Sylvie Willis
As of July 2025, 25 litres of fuel in Nigeria would cost between 17,500 and 22,000 Nigerian Naira. The price of fuel in Nigeria has been steadily increasing due to a variety of factors, including the removal of fuel subsidies, frequent fuel scarcity, inadequate refining capacity, pipeline vandalism, and corruption. These factors contribute to a thriving black market for fuel, where prices are typically higher than the official rates. The high fuel prices have had negative implications for the country's economic growth and have led to increased transportation costs for the average Nigerian.
| Characteristics | Values |
|---|---|
| Price of 25 litres of fuel in Nigeria | Between 17,500 and 22,000 Nigerian Naira |
| Price of octane-95 gasoline per litre in Nigeria | 816.67 Nigerian Naira |
| Average price of gasoline per litre in Nigeria (as of January 2024) | 668.3 Nigerian Naira |
| Average price of gasoline per litre in the world | 1971.18 Nigerian Naira |
| Fuel price in Nigeria | Varies by state |
| Black market fuel price in Nigeria | Higher than official rates |
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What You'll Learn
Fuel prices vary across Nigeria
This variation in fuel prices across Nigeria is influenced by multiple factors. Firstly, the NNPC pump price differs from state to state, leading to discrepancies in fuel costs. For example, the fuel price in Abuja may not be the same as in Lagos. The NNPC's decision to increase fuel pump prices due to the removal of fuel subsidies has also contributed to price disparities.
Another factor is the existence of a black market for fuel in Nigeria, which arises due to frequent fuel scarcity caused by inadequate refining capacity, pipeline vandalism, and corruption. Black market fuel prices fluctuate based on availability, and during periods of scarcity, prices can be two to three times higher than official rates. However, when fuel is more readily available, black market prices may align closer to the official rates.
Nigeria's position as one of the world's largest oil producers yet its lack of refining capacity to meet domestic fuel needs also impacts fuel prices. This situation makes the country vulnerable to fluctuations in international oil prices and foreign exchange rates, often resulting in supply shortages that drive up costs.
The impact of varying fuel prices in Nigeria is significant. Higher fuel prices lead to increased transportation costs, as most vehicles and generators in the country rely on petrol or diesel. This, in turn, can cause a rise in the cost of goods and services as businesses pass on these increased expenses to consumers. Additionally, high fuel prices may deter investment in the transport and manufacturing sectors, potentially hindering economic growth and the country's efforts to reduce its dependence on oil revenues.
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Frequent fuel scarcity
As of July 2025, the price of octane-95 gasoline in Nigeria is 816.67 Nigerian Naira per litre, which equates to 20,416.75 Naira for 25 litres. However, fuel scarcity in Nigeria is a frequent issue with severe repercussions on the daily lives of Nigerians. The scarcity of fuel has led to long queues at petrol stations, with people spending hours or even days attempting to secure enough fuel for their basic needs. This has resulted in increased stress and significant productivity loss for Nigerians.
Fuel scarcity in Nigeria has been a recurring issue for several decades, often triggered by global oil prices, governmental policies, and infrastructural problems. The country's history with fuel scarcity dates back to the 1970s oil boom, which brought wealth but also created a dependency on oil revenues, setting the stage for future economic vulnerabilities. In the 1980s and 1990s, Nigeria faced recurring fuel shortages due to declining oil prices, corruption, and mismanagement. The removal of fuel subsidies, inconsistent policies, and the diversion of subsidized fuel for sale in neighbouring countries have also contributed to the frequent fuel scarcities.
The impact of fuel scarcity is felt across all sectors of the economy and exacerbates the hardships faced by the population. Transportation costs increase, directly affecting the prices of goods and services, contributing to inflation. Small and medium enterprises, sensitive to fuel price fluctuations, are hit the hardest, often leading to layoffs and a slowdown in economic activities. The frequent scarcities have also led to a reliance on diesel generators, which are less efficient and contribute to local air pollution and global emissions.
Despite assurances from the Nigeria National Petroleum Corporation (NNPC) that issues causing fuel scarcity have been resolved, the situation often persists or worsens. NNPC has blamed fuel scarcity on debt to suppliers of imported refined fuel, while the Public Relations Officer of IPMAN has attributed it to challenges in sourcing petroleum products and refinery maintenance in Europe. The scarcity's impact is particularly felt in regions like Ikorodu, Sango, and Mowe in Ogun State, where motorists endure prolonged waits. Speculations about price increases lead to excessive hoarding and panic buying, further exacerbating the issue.
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Fuel subsidies removed
The price of 25 litres of fuel in Nigeria varies depending on the type of fuel and the date of purchase. As of July 2025, the price of octane-95 gasoline was 816.67 Nigerian Naira per litre, which would make 25 litres approximately 20,416.75 Naira.
Now, onto the topic of fuel subsidies in Nigeria and their removal. Nigeria has long had fuel subsidies in place, with the government fixing a price for petrol below the international market price and using state funds to pay the difference. This subsidy was estimated to cost the country around USD 3.9 billion, almost double the government's spending on health. Despite numerous attempts, the subsidy remained in place due to strong popular opposition to its removal.
However, in May 2023, President Bola Tinubu announced the end of the fuel subsidy. This decision was made to address the ever-increasing costs of the subsidy and to redirect funds towards public infrastructure, education, healthcare, and job creation. The removal of the subsidy caused petrol prices to triple, increasing transport costs and overall inflation, to the anger of motorists and organised labour groups. There were even threats of a nationwide strike, similar to the one in 2012 when the government attempted to end subsidies. Despite this opposition, the Tinubu administration negotiated, and the threat of a strike was withdrawn.
The removal of the fuel subsidy is expected to have several impacts on Nigeria. Firstly, it will result in higher petrol prices and increased costs for transport and living. Secondly, it will free up significant funds for the government, which it plans to invest in infrastructure, transportation, energy, and other sectors. Additionally, ending the subsidy is projected to reduce carbon dioxide emissions by more than 15 million tonnes annually, helping Nigeria meet its commitments under the Paris Agreement. While some analysts argue that this decision could boost Nigeria's economy, others worry about the impact of higher fuel prices on citizens, particularly those from lower economic backgrounds.
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Black market fuel
In Nigeria, the official pump price for a litre of fuel is N87. However, in 2016, many Nigerians had to resort to buying black market fuel due to scarcity and long queues at filling stations. Black market fuel is often sold by the roadside, with vendors hanging out near filling stations, waiting for customers. The price of black market fuel varies depending on location and availability, but it is often higher than the official pump price. For example, in 2016, Nigerians were paying between N90 and N1000 per litre of black market fuel, with an average price of N221 per litre, according to a survey.
The trade in black market fuel has had significant impacts on the economy and society in Nigeria and neighbouring countries. In Nigeria, the black market fuel industry is often linked to oil bunkering and theft, with security crackdowns attempting to curb these illegal activities. In Benin and Togo, to the west of Nigeria, the end of fuel subsidies in Nigeria has affected the supply of contraband fuel, causing some vendors to lose business and seek alternative livelihoods.
The quality of fuel in Nigeria, both from official sources and the black market, has been a concern. In 2020, it was revealed that petrol sold to Nigeria from Europe was "dirtier" than black market fuel. Samples of diesel and gasoline from government-licensed filling stations in Port Harcourt and Lagos exceeded EU pollution limits by a significant amount. On the other hand, laboratory analysis showed that black market fuel, though still highly polluting, was of a higher quality than the imported fuel. This finding suggests that Nigeria is receiving fuel that cannot be sold to countries with higher environmental standards.
The extreme toxicity of imported fuel has serious implications for public health and the environment. Nigeria already faces high levels of air pollution due to the large number of old cars and inefficient generators in use. The situation is worsened by the importation of low-quality fuel, contributing to rising asthma, lung, heart, and respiratory diseases. To address this issue, Nigeria, along with other African countries, promised in 2017 to stop importing "Africa quality" oil products as part of a UN environment programme initiative.
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High fuel prices impact
As of October 2024, the price of a litre of gasoline in Nigeria ranges from 998 naira per litre ($0.6257) to 1,030 naira per litre. This is an increase of over 15% and marks the second hike in less than a month. This increase has had a significant impact on various sectors of the Nigerian economy and households.
One of the immediate consequences of high fuel prices is an increase in transport fares. This, in turn, affects other areas such as school fees and house rent. The agricultural sector, once a backbone of Nigeria's economy, has also been impacted. Smallholder farmers have faced challenges due to increased transportation costs and inadequate vehicles to transport their produce to markets. The removal of fuel subsidies has also led to diminished household incomes, inflation, and reduced competitiveness in the market.
The media industry, particularly private radio stations, has not been spared from the effects of high fuel prices. These stations now face increased operational costs, with fuel increments impacting the air space pricing for advertisements and programmes.
High fuel prices have also exacerbated the cost-of-living crisis in Nigeria, where millions of households and small businesses rely on generators for electricity due to the unreliable national electricity grid. The increase in fuel prices has sparked criticism from labour unions and manufacturers, who warn of further economic hardships.
To mitigate the impact of high fuel prices, some have suggested that policies such as fuel subsidy removal should be implemented gradually, with thorough research conducted beforehand to avoid sudden hardships for citizens, especially smallholder farmers.
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Frequently asked questions
As of July 2025, the price per litre of petrol in Nigeria is between 700 and 880 Nigerian Naira, so 25 litres would cost between 17,500 and 22,000 Naira.
Fuel prices in Nigeria are influenced by global oil prices and exchange rates. Nigeria is susceptible to fluctuations in international oil prices because it lacks the refining capacity to meet its domestic fuel needs.
Aside from filling stations, petrol is also sold on the black market in Nigeria. Black market prices are typically higher than official rates and fluctuate based on fuel availability.
