Fuel prices in Nigeria tell a story, not just about costs at the pump but about economic decisions, political shifts, and global oil markets. From the early days of modest adjustments to the shockwaves of major reforms, these price changes have affected the lives of everyday Nigerians.
Nigeria's economy, heavily reliant on crude oil exports as a primary source of revenue, significantly influences how fuel pricing policies, including subsidies, are developed and implemented.
Let’s walk through the significant moments from 1973 to 2024 that shaped the fuel pricing landscape and examine how oil barrel prices played a pivotal role in this narrative.
Key takeaways
1986: Fuel prices jumped to₦0.395 as General Babangida implemented the Structural Adjustment Program, with oil barrels priced at roughly $15 amidst global economic uncertainty.
1993: Chief Ernest Shonekan's government sparked public outrage by raising prices by 614% to ₦5.00 per liter when oil was hovering around $18 per barrel.
2007: The President Yar'Adua administration reduced the price of fuel to₦65.00, the only government to do so.
2012: Under President Goodluck Jonathan, prices spiked to ₦141 per liter due to subsidy cuts, while oil barrels were trading at about $110, triggering mass protests.
2023: The subsidy removal by President Bola Tinubu saw prices soar to₦617 per liter as oil hovered at $75 per barrel, caused by a shift towards market-driven policies.
2024: Prices climbed to₦1,030 per liter as oil barrels reached $80, compounded by currency devaluation and continued economic reforms.
View of fuel price increase in Nigeria 1973-2024
The 1970s–1980s: Modest beginnings to major shifts
The 1970s marked an era when fuel prices first caught Nigerians’ attention. Under General Yakubu Gowon, the price per liter rose by 40.8% from₦0.06 to ₦0.0845 in 1973.
At this time, oil barrels sold for under $10. The modest trend continued, but things took a serious turn in 1978 when General Obasanjo raised prices to ₦0.153 per liter, a 70% increase. This was partly due to global oil shocks that sent oil prices soaring past $35, influencing local decisions.
In 1982, under President Shehu Shagari, fuel prices rose to ₦0.20 per liter, influenced by oil barrel prices peaking at around $35. The 1986 adjustment under General Babangida was even more drastic; prices nearly doubled to₦0.395 as part of the Structural Adjustment Program, aligning with falling oil barrel prices that averaged $15.
The 1990s: Political drama and sharp increases
The '90s brought sharp changes, starting with Chief Ernest Shonekan’s administration in 1993, which hiked fuel prices to ₦5.00 per liter, a 614% increase that shocked the nation. At the time, oil barrel prices were roughly $18, and economic turmoil made this increase particularly painful. The public outcry was immediate and intense.
General Sani Abacha, known for his hard line approach, reversed some of the price hikes by reducing it to ₦3.25 per liter before raising it again.
The oil barrel prices during his time fluctuated between $15 and $20, reflecting global market uncertainties. In 1998, General Abdulsalami Abubakar’s administration saw fuel prices rise to ₦25.00 per liter, later easing back to ₦20.00 as oil hovered around $12 to $14 per barrel amidst political transitions.
2000–2012: Reform efforts and public backlash
When President Olusegun Obasanjo came to power in 1999, he pushed for a deregulated fuel market. By 2000, prices had reached ₦30.00 per liter, with oil barrel prices climbing past $30. Obasanjo's policies brought more price hikes, aiming to reduce subsidy costs and encourage market stability.
The short-lived Yar'Adua administration stands out as the only one to reduce fuel prices by 15.39%, with the price of oil at $75.
The most significant jolt came in 2012 under President Goodluck Jonathan, when prices jumped to ₦141 per liter. This move was tied to a reduction in fuel subsidies while oil prices surged to about $110 per barrel. The public backlash was immediate and fierce, with protests leading to a price rollback to ₦97 per liter.
2016-2020: Subsidy struggles and modest increases
In 2016, President Muhammadu Buhari’s administration saw fuel prices increase from₦87 to ₦145 per liter as part of subsidy reforms, coinciding with oil prices averaging $45 per barrel.
The government’s decision was framed as a necessary step to reduce financial strain, despite its effect on citizens' daily lives. Global oil prices during this period fluctuated, adding pressure to domestic fuel pricing.
2023-2024: Market realignments and economic pressures
Under President Bola Tinubu, the landscape changed dramatically in 2023 when subsidies were removed, pushing fuel prices to ₦617 per liter. This move came as oil barrels were priced at about $75, signaling a shift towards market-driven practices to curb government spending.
By 2024, prices reached ₦1,030 per liter amidst ongoing economic reforms and currency devaluation, while oil barrel prices averaged $80. The move sparked mixed reactions—relief among policymakers looking for stability and challenges for everyday Nigerians adapting to higher living costs.
Conclusion
From 1973 to 2024, Nigeria's fuel price history has been a dance between subsidized cushioning and harsh market realities. Each increase reflected not only government policy but global oil price trends and local economic conditions.
While recent market-driven pricing under President Tinubu presents long-term hopes of economic stabilisation, the immediate impact continues to test Nigerians' resilience.
