Nigeria’s petrol prices have climbed to record levels as higher global oil prices driven by Middle East tensions add fresh pressure to household finances ahead of the country’s January 2027 general election.
Petrol is selling for about 1,400 naira ($1.05) a litre in Lagos and Abuja, up from roughly 1,200 naira a month earlier, while some filling stations in northern Nigeria are charging as much as 1,500 naira. Diesel prices have risen above 2,000 naira a litre.
The increases come despite the Dangote refinery, Africa’s largest, operating at its full capacity of around 700,000 barrels per day, underscoring Nigeria’s continued exposure to swings in international crude prices.
“Fuel costs are eating into our earnings. After buying fuel, there is very little left for our families,” Abuja-based truck driver Caleb Ojobo said.
The latest increase followed a decision by the Dangote refinery to raise its wholesale loading-bay price to 1,350 naira per litre as crude costs rose.
Nigeria is Africa’s largest oil producer and a member of OPEC, but domestic fuel prices remain closely linked to global energy markets.
With the general election scheduled for January 16, 2027, fuel prices have become a prominent issue in the political debate over President Bola Tinubu’s economic record.
Tinubu abolished Nigeria’s long-standing petrol subsidy after taking office, a measure welcomed by some investors and economists but criticised by opponents and labour groups who say it has contributed to a sharp rise in living costs.
The president has repeatedly ruled out restoring the subsidy.
“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, CEO of fintech company Damisa Technologies.
The latest rise comes as billionaire Aliko Dangote begins selling shares in the refinery to the public to finance its expansion.
The offering has attracted strong interest from investors, but higher pump prices have intensified pressure on consumers.
Nigeria Labour Congress President Joe Ajaero said the rising costs were deepening hardship and called for additional wage support and increased supplies of naira-denominated crude to the refinery.
“These new costs continue to inflict and deepen poverty among the populace,” Ajaero said.
Analysts say higher fuel prices could also feed into inflation.
Nigeria’s headline inflation rate eased slightly to 15.39% in August from 15.43% in July, while food inflation remained considerably higher at 19.57%.
