Nigeria’s government announced a 65 percent increase in gasoline prices on Tuesday, ending a long-standing fuel subsidy in what authorities called a necessary step toward economic reform — but triggering immediate outrage among ordinary Nigerians already struggling with soaring costs of living.
The Announcement
The Minister of Petroleum Resources announced the new pump price in an early-morning televised address, saying the subsidy had cost the federal government over 5 trillion naira ($3.9 billion) in the past year alone — money the government said it could no longer sustain amid mounting debt servicing costs and a sharply depreciating currency.
The new retail price of gasoline now stands at approximately 1,800 naira per liter in major cities — a dramatic jump from the previous price of around 1,090 naira. In remote areas, consumers are expected to pay even more.
“This decision was not taken lightly,” the minister said. “But continued subsidization of fuel at the expense of education, healthcare, and infrastructure is simply not a trade-off this country can afford any longer.”
A Breaking Point for Ordinary Nigerians
For the vast majority of Nigerians, Tuesday’s announcement felt like a body blow. In Lagos, Abuja, and Port Harcourt, queues began forming at filling stations before dawn — many motorists racing to stock up before the new prices took effect at midnight.
The timing is particularly painful. Nigeria is already in the grip of a severe cost-of-living crisis. Food inflation has been running at over 35 percent year-on-year, the naira has lost more than 60 percent of its value against the dollar in 24 months, and unemployment figures have climbed to their highest levels since records began.
Protests Erupt Across the Country
Within hours of the announcement, protests had erupted in multiple cities. In Lagos, demonstrators blocked major arterial roads, chanting anti-government slogans and burning tires. In the north, protests took a more volatile turn in Kano and Katsina, where security sources confirmed that a fuel depot had been set ablaze.
The Nigeria Labour Congress called for a nationwide strike within 48 hours if the government did not reverse course.
Government’s Defense
President Bola Tinubu, who inherited the subsidy regime from his predecessor, has for months signaled that reform was inevitable. Tuesday’s increase marks the second major energy price adjustment in as many years.
Administration officials argue that removing the subsidy was a key condition for unlocking a $2.5 billion credit facility from the International Monetary Fund, and that the savings would be redirected toward infrastructure and social welfare programs.
Economic Context
Nigeria’s fuel subsidy has been a source of political controversy for over three decades. Instead of investing in refineries — Nigeria still imports most of its refined petroleum products despite being a major crude oil producer — the country burned through scarce foreign exchange reserves defending the naira and paying subsidy bills.
The price gap between Nigerian fuel and that in neighboring countries is also expected to intensify cross-border smuggling.