…NLC, stakeholders calls for relief measures
Nigeria is facing mounting pressure to implement economic relief measures as the ongoing conflict between the United States and Iran pushes global crude oil prices higher, causing petrol costs across the country to surge to unprecedented levels.
Industry operators, economists, labour unions, and private sector leaders have called on the Federal Government to channel expected windfalls from rising oil prices toward cushioning citizens and businesses from the financial shock. Without intervention, soaring fuel costs are expected to exacerbate inflation and deepen economic hardship.
Petrol prices have reportedly climbed to between ₦1,200 and ₦1,300 per litre in various regions, with projections suggesting costs could exceed ₦1,500, or even approach ₦2,000 per litre if the Middle-East crisis persists. The Ɗangote Petroleum Refinery recently cited the geopolitical tension as a major factor in raising gantry prices from below ₦800 to ₦1,175 per litre. Meanwhile, crude oil prices have jumped from $68 to $103 per barrel amid the conflict.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) urged the Government to cut taxes and charges on petroleum products – including levies from Nigerian Maritime Administration and Safety Agency, (NIMASA), Nigerian Ports Authority, and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) – to reduce pump prices. IPMAN also highlighted the need to repair pipelines to cut distribution costs and ensure more uniform petrol pricing across the country through the Petroleum Equalisation Fund.
The Organised Private Sector recommended that the government invest additional oil revenue in domestic refining, Compressed Natural Gas (CNG) adoption, and infrastructure improvements rather than reverting to broad fuel subsidies. President of the Lagos Chamber of Commerce and Industry (LCCI), Leye Kupoluyi, emphasised that promoting local refineries and alternative fuels such as CNG would reduce long-term dependency on imported petrol and stabilize supply.
The Nigeria Labour Congress (NLC) warned that workers are already struggling with fuel prices between ₦1,170 and ₦1,300 per litre. The union called for urgent interventions, including wage adjustments, cost-of-living allowances, social transfers, and tax relief for low-income earners. It also urged the government to restore operations at domestic refineries in Port-Harcourt, Warri, and Kaduna to reduce exposure to global price shocks.
Economists warned of a paradox: while higher crude prices boost government revenue and foreign exchange inflows, citizens and businesses face higher domestic fuel costs. Strategies such as targeted subsidies at the source, fiscal incentives for local refining, investments in renewable energy, and expanded mass transit systems could mitigate the impact on households and firms.
The Nigerian Economic Summit Group (NESG) also cautioned against reintroducing fuel subsidies, arguing that Nigeria should save oil windfalls, strengthen reserves, maintain subsidy reforms, and expand targeted social protection programs. The group emphasised that domestic refining capacity, including the Ɗangote Refinery, now provides a buffer against global supply shocks, but poor policy decisions could undermine these gains.
With petrol prices projected to continue climbing if the Middle-East conflict persists, stakeholders are urging the Federal Government to deploy strategic measures – balancing fiscal prudence, social support, and long-term energy sustainability – to prevent widespread economic hardship while leveraging higher oil earnings.
