Nigeria Fuel Prices Hit Record Highs as Cost-of-Living Pressure Builds Before 2027 Vote

Nigerian petrol prices have climbed to record levels, intensifying cost-of-living pressures on households less than six months before the country's general election. The increase has been driven by tensions in the Middle East that have pushed up global oil prices, even as Africa's largest refinery operates at full capacity.

Petrol now sells for roughly 1,400 naira (about $1.05) per litre in Lagos and Abuja, up from around 1,200 naira a month earlier. In parts of northern Nigeria, some filling stations are charging as much as 1,500 naira per litre. Diesel is trading even higher, at more than 2,000 naira a litre.

The price surge followed a decision by the Dangote refinery to raise its wholesale gantry price to 1,350 naira per litre, reflecting higher crude costs and the continued exposure of domestic fuel prices to international market swings. The refinery, Africa's largest, is running at its full capacity of 700,000 barrels per day, underscoring the limits of local refining in insulating consumers from global shocks. Nigeria is Africa's largest oil producer and a member of OPEC.

The development has revived debate over President Bola Tinubu's removal of the petrol subsidy — a reform welcomed by investors but criticised for deepening a cost-of-living crisis that has eroded household purchasing power. The president has ruled out reinstating subsidies.

"Fuel costs are eating into our earnings. After buying fuel, there is very little left for our families," said Caleb Ojobo, a truck driver based in Abuja.

With the general election scheduled for January 16, opposition politicians have seized on fuel prices as a central measure of the government's economic record. Analysts note that fuel pricing often serves as a proxy for the broader cost-of-living debate.

"Fuel pricing tends to function as a proxy for the broader cost-of-living debate, and sustained increases raise the political premium on demonstrating that reform is delivering offsetting benefits," said Jordan Lawrence, chief executive of fintech firm Damisa Technologies.

The high pump prices coincide with billionaire Aliko Dangote's move to sell shares to the public to fund an expansion of his refinery. While the initial public offering has drawn strong interest, consumers continue to face higher costs at the pump.

"These new costs continue to inflict and deepen poverty among the populace," said Nigeria Labour Congress President Joe Ajaero, who called for additional wage support and more naira-denominated crude supplies to the refinery to help curb further price increases.

Analysts expect fuel prices to add pressure on inflation, which eased slightly to 15.39% in August from 15.43% in July. Food inflation also moderated but remained elevated at 19.57%.