Despite efforts at making reduction in price of petrol in the last four weeks by Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL), a report has revealed that petrol price may pile more pressure on the economy in the year.
SBM Intelligence in its latest report titled, ‘The Price of Everything 2025’, said Nigeria has experienced a relentless rise in petrol prices over the past decade, reports Daily Independent.
The report revealed a 69.9 percent increase in petrol costs within the past year alone.
This surge, it said, has triggered a ripple effect across various sectors, driving up transportation expenses, inflating food prices, and exacerbating the country’s cost-of-living crisis.
According to SBM Intelligence’s report, Nigeria’s inflation rate soared to 33.2 percent in 2024, marking a near 30-year high.
“The escalation in fuel prices has been a major driver of this inflationary pressure, with transportation costs more than doubling within the reporting period.
“The increased cost of moving goods and people has contributed significantly to food price spikes, with staple items like local rice (82%), foreign rice (73.7%), and noodles (91.3%) witnessing alarming price hikes.
“The cost of petrol is no longer just about fueling cars; it’s fueling inflation, poverty, and economic instability,” the SBM Intelligence report stated.
“When transport costs rise, every sector feels the heat, from food markets to small businesses. Nigerians are being squeezed at every turn.”
The domino effect of rising fuel prices is particularly evident in Nigeria’s agricultural sector. Farmers and traders, who rely on road transport to move produce from rural areas to urban markets, have faced crippling logistics costs, forcing them to pass these costs onto consumers, the report noted.
The report added that insecurity, flooding, and naira devaluation have further compounded the issue, pushing millions of Nigerians below the poverty line.
Additionally, the report highlights the social consequences of inflation, including a 144 percent increase in the price of sanitary pads, which has deepened the problem of period poverty in Nigeria.
With many families prioritising food over hygiene products, young girls are increasingly forced to use unsafe alternatives, leading to health risks and disruptions in education.
Despite rising costs across multiple sectors, telecommunications emerged as one of the few industries that maintained price stability throughout 2024.
Data and call rates remained unchanged for major mobile networks, providing a rare financial relief for Nigerians battling economic hardship.
However, a recent 50 percent tariff hike approved by the Nigerian Communications Commission (NCC) in January 2025 threatens to disrupt this stability.
Looking ahead, the SBM report warns that fuel price volatility will continue to exert pressure on the economy in 2025, particularly as domestic food production declines.
However, the anticipated full-scale operation of the Dangote Refinery and government intervention in the forex market could offer some relief in the long term, it said.
For now, as petrol prices keep rising, the cost of survival in Nigeria remains an uphill battle, the analysts said.
