Fuel Price Hike: Experts, CSOs Clash Over Subsidy as Nigerians Face Rising Hardship

Calls for Bola Ahmed Tinubu’s administration to implement palliatives or restore fuel subsidies to lessen the effect of skyrocketing petrol prices brought on by rising global crude oil prices are divided among experts and civil society organizations.

The 24-day battle between Iran, the US, and Israel has caused disruptions to the world’s energy markets and driven crude prices above $100 per barrel, which is significantly higher than Nigeria’s 2026 budget benchmark of $64 per barrel.

Nigeria’s oil revenue has increased recently due to the boom, but the country’s economic situation has also deteriorated.

As of Monday, March 23, 2026, the price of petrol has increased by approximately N492, or 56%, to between N1,367 and N1,390 per liter from N875 recorded before to February 28.

Millions of Nigerians, especially those making the N70,000 minimum salary, have seen their purchasing power further diminished as a result of the spike in food and transportation costs.

Some stakeholders have urged the government to implement relief measures to alleviate the cost-of-living crisis amid mounting hardship.

To stop energy-driven inflation, the Federal Government has been encouraged by the Centre for the Promotion of Private Enterprises (CPPE) to implement a coordinated policy framework.

Muda Yusuf, the CEO of CPPE, said in a statement that Nigeria’s disinflation trend, which was 15.06 percent in February, could be reversed by the Middle East situation.

In a similar vein, Joe Ajaero, president of the Nigeria Labour Congress, stated that the government should act without waiting for labor unrest.

The crisis has increased the budget threshold and brought in enormous amounts of money for the government.

“Part of these funds should be used by the government to mitigate the impact on citizens,” he stated.
To offset the spike in fuel prices, the Oyo State government recently announced N10,000 salary allowances for its civil staff.

Speaking experts are still at odds over what the Nigerian government should do.

Misconceptions about fuel subsidy returns are addressed by Prof. emeritus Wumi.

Wumi Iledare, an emeritus professor of petroleum economics, rejected requests for gasoline subsidies to be reinstated, calling them unwise and unsustainable from an economic standpoint.

Some stakeholders’ opinion that fuel subsidies should be reinstated in order to mitigate the recent surge in gas prices seems misguided and hard to defend.

“Market inefficiencies and significant welfare losses are often caused by consumer fuel subsidies,” he said.
He claims that previous subsidy programs have taken funds away from vital industries like power, infrastructure, healthcare, and education.

He warned that a return to subsidies would be foolish, adding, “Evidence over the past two to three decades suggests that subsidy regimes often crowd out critical public investments.”

Rather, Iledare suggested smart utilization of oil windfalls, better governance in the energy industry, and focused social measures to increase economic resilience.

In order to reduce costs, he also recommended legislative solutions including the elimination of import taxes or the Value Added Tax on petroleum goods, as well as crude oil discounts for nearby refineries like the Dangote Refinery.

Rafsanjani: Tinubu’s government has no pro-people policies.

However, Auwal Rafsanjani, the Executive Director of Transparency International Nigeria and the Civil Society Legislative Advocacy Center (CISLAC), urged immediate pro-people measures to alleviate the suffering.

He stated, “Nigerian leaders must first and foremost have a package for relief to lessen the suffering of Nigerians in all ramifications.”

Rafsanjani bemoaned the lack of “pro-poor” and “sympathetic” measures and cautioned that if immediate action was not taken, the situation would get worse.

“The money from the removal of subsidies has not translated into mitigating Nigerian suffering,” he stated, speculating that administration may be overshadowed by political agendas ahead of elections.

He emphasized the necessity for inclusive policies that put the wellbeing of regular Nigerians first, characterizing the situation as a gap between leaders and citizens.

“Our political leaders and governance system are not pro-poor and are not interested in putting systems in place to mitigate the suffering of Nigerians,” he declared.