Nigerians are facing deepening economic hardship, as rising global oil prices, triggered by the ongoing Middle-East conflict involving the United States, Israel and Iran, push domestic petrol prices to about ₦1,500 per litre, while electricity supply remains erratic.
The surge in crude oil prices above $100 per barrel, worsened by disruptions around the Strait of Hormuz, has driven-up fuel costs across Nigeria, with prices rising sharply from about ₦800 in late February.
Across the country, households and businesses are grappling with a dual crisis of expensive fuel and prolonged power outages, forcing many to ration electricity use, cut expenses, and rely on alternative energy sources such as charcoal and solar.
Small businesses have been hit hardest, with many scaling-down operations or shutting temporarily due to rising generator and transportation costs. The situation has also triggered increases in transport fares and food prices, further squeezing household incomes.
Minister of Power, Adebayo Adelabu, has apologised for the worsening outages, acknowledging the strain on homes, schools, and industries.
Economists warn that the energy shock could reverse recent gains in inflation control. Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, called for urgent support for local refineries, improved electricity supply, and tax waivers on renewable energy equipment to ease pressure on consumers.
Similarly, former NACCIMA President, Dele Oye, cautioned against fuel price caps, warning they could reintroduce costly subsidies and distort supply, while noting that Nigeria may not fully benefit from high oil prices due to low production and existing obligations. On his part, petroleum dealers’ representative, Ibrahim Yahaya, said without government intervention, Nigerians will continue to suffer as fuel prices rise with no subsidy cushion in place.
The Centre for Social Justice, led by Eze Onyekpere, on its part, urged the Federal Government to roll out immediate palliatives, including targeted tax reliefs and increased crude supply to local refineries to stabilise domestic prices.
Some state governments have begun limited interventions. In Oyo State, Governor Seyi Makinde approved a ₦10,000 monthly transport allowance for workers to cushion the impact of rising costs. Despite these efforts, concerns are mounting over potential job losses and declining productivity, particularly among small and medium enterprises.
Experts say Nigeria’s options remain constrained, urging disciplined fiscal management, investment in energy infrastructure, and long-term reforms to reduce reliance on imported fuel and volatile global oil markets.
