Nigeria’s petrol prices remain significantly lower than global averages, according to the Federal Government, which attributes this trend to the economic reforms implemented by President Bola Tinubu. During the commissioning of the Nigeria Revenue Service headquarters in Abuja, Executive Chairman Zacch Adedeji highlighted that the price of petrol in Nigeria stands at approximately $0.88 per litre. In contrast, prices in the United States are around $1.70 per litre, while India sees prices that are 25% higher and South Africa’s are 35% higher. Adedeji noted that, on a global scale, Nigerian petrol prices are about 50% below the average.
He linked the relative affordability of petrol to the revival of local refining capacity, particularly the full operation of the Dangote Refinery. This development, he stated, has enhanced energy security and stabilized supply. Adedeji contrasted the current situation with the period immediately following Tinubu’s inauguration in May 2023, when the removal of fuel subsidies caused pump prices to surge from under N200 to nearly N1,000 per litre. He pointed out that recent tensions in the Middle East have led to prices exceeding N1,200 in some regions.
Furthermore, the Naira-for-Crude policy, which allows domestic crude to be sold in local currency, was praised by Adedeji. He described this policy as a historic shift that has transformed Nigeria from a net importer to a net exporter of petroleum products, with Dangote reportedly supplying 17 cargoes to other African countries. Initially met with skepticism, the policy has successfully eliminated fuel queues and strengthened Nigeria’s position in the regional energy market. Adedeji emphasized that while the reforms have been challenging, they were essential to prevent chronic fuel shortages and price volatility. He insisted that the stability in supply today is a direct outcome of the government’s readiness to make bold economic decisions.
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