GNV News, April 13, 2026

In March 2026, the retail price of gasoline in Nigeria, Africa’s largest oil producer, soared by 65%. This was the highest rate of increase on the African continent. Behind this surge was not only the disruption in energy supplies caused by the war in the Persian Gulf, but also the abolition of fuel subsidies implemented in May 2023 by President Bola Tinubu.

In Nigeria, fuel subsidies were introduced in 1977 to mitigate the inflationary impact of a global spike in energy prices. While they helped curb retail gasoline prices and restrain inflation, critics argue that Nigeria is one of the countries with the lowest number of vehicles per capita, and that these fuel subsidies disproportionately benefited elites who could afford to buy fuel at market prices. In addition, because the fuel subsidies were a heavy burden on public finances, opponents had long called for their abolition, which Tinubu implemented after taking office as president.

Why, then, did the abolition of fuel subsidies lead to this sharp price spike? Although Nigeria is Africa’s largest oil producer and exports large volumes of crude oil, a lack of oil refineries has meant that, for many years, the country has relied on imports for most of its refined fuel, including gasoline. Until now, price hikes in gasoline and the resulting inflation had occurred, but government subsidies kept retail prices low. However, with the abolition of fuel subsidies, retail prices have become heavily dependent on external conditions.

In this context, the rise in international crude oil prices triggered by the war that broke out in the Persian Gulf at the end of February 2026 caused domestic retail prices in Nigeria to surge, resulting in a dramatic 65% increase. Inflation is accelerating within the country, and citizens are feeling the severe impact of higher prices of refined products such as gasoline and diesel. The government is being called upon to adopt new measures, such as building oil refining facilities and establishing strategic petroleum reserves.

Learn more about Nigeria → “Nigeria: Record Hunger and Stalled Aid”

Learn about other countries’ examples of fuel subsidies → “Bolivia: Protests over the Abolition of Fuel Subsidies Come to an End”

Gas station in Ilorin, Kwara State, Nigeria (Photo: Jamie Tubers / Wikimedia Commons [CC BY-SA 4.0])