Nigeria's Fuel Prices Surge Post-Subsidy Removal

On 29 May 2023, petrol in Nigeria was priced at roughly ₦195 per litre. Following President Tinubu's declaration that "subsidy is gone," prices escalated to between ₦488 and ₦555 per litre, eventually reaching about ₦1,230–₦1,300 per litre.

To revert to the pre-Tinubu price of ₦195, a subsidy of approximately ₦1,105 per litre would be necessary, costing ₦52.377 billion daily based on a consumption figure of 47.4 million litres. The discussion around reinstating the subsidy, supported by figures like Alhaji Atiku Abubakar, raises critical questions about the actual price being promised to Nigerians.

While subsidy removal has exacerbated the cost-of-living crisis by increasing transport costs and food prices, it is noted that economic hardships existed prior to this change, including inflation, unemployment, and widespread poverty. Thus, reinstating the subsidy is not viewed as a comprehensive solution to Nigeria's broader economic challenges.