Nigeria’s fuel price history is a reflection of the nation’s economic difficulties, governmental policies, and the world oil market. Following is a summary of changes in fuel prices from 1960 until 2023:
The Initial Years and Stability, 1960–1978
1960s–1970s: Nigeria’s fuel prices stayed comparatively low and steady following its independence in 1960. Fuel was substantially subsidized by the government, lowering the price for the general populace. Nigeria had an oil boom in the 1970s, which helped to keep fuel prices low. From 1966 to 1973, under General Yakubu Gowon’s administration, fuel was sold for between 6 and 8.5 kobo. There wasn’t much of a price increase from 8.5 kobo to 9 kobo when Murtala Muhammed became the head of state.
1978–1985: The Initial Authorized Increases.
1978: Under General Olusegun Obasanjo’s military government, there was the first official increase in fuel prices, which caused the price per liter to rise from 8.4 to 15.3.
1982: Under President Shehu Shagari’s leadership, there was an additional increase in price, which brought the price per liter to 20 kobo.
1985-1999: Modifications to the Structure and Variations.
1986: As part of the 1986 Structural Adjustment Program (SAP), fuel prices started to climb sharply under General Ibrahim Babangida’s military control. The cost per liter was increased to 39.5 kobo.
Between 1989 and 1994, Babangida raised fuel prices several times, reaching 70 kobo per liter in 1989 and 3.25 Naira per liter in 1994.
1998: As part of a move to appease the public, General Sani Abacha lowered the price to 11 Naira per liter.
Democratic Era and Price Liberalization, 1999–2007
1999: Gradual price deregulation got underway with President Olusegun Obasanjo’s return to office as a civilian leader. In 1999, the price went up to 20 Naira per liter.
2000–2007: The cost increased gradually, hitting 70 Naira per liter by the time Obasanjo’s administration ended in 2007.
2007–2015: Persistent Rises and Open Demonstrations
2008–2009: In 2008, President Umaru Musa Yar’Adua somewhat lowered the price per liter to 65 Naira. His administration did, however, manage to keep prices largely steady.
2012: The government tried to completely eliminate fuel subsidies under President Goodluck Jonathan, driving up the price to 141 Naira per liter. The government was forced to lower the price to 97 Naira a liter as a result of the massive protests that followed (Occupy Nigeria).
2015: Jonathan lowered the price to 87 Naira per liter right before he left office.
Buhari’s Administration and Price Deregulation, 2015–2023
2016: Due to economic pressures, President Muhammadu Buhari—who was previously well-known for his opposition to the elimination of subsidies—saw a sharp rise in fuel prices. The cost per liter was increased to 145 Naira.
2020: The government declared a shift toward complete deregulation in reaction to the COVID-19 pandemic’s effects on the world economy and the volatility of oil prices. As a result, there was a floating pricing system in place, with a liter’s price ranging from 123 to 162 Naira. 2021: The price fluctuated within this range as the world oil market changed.
2023: Due to persistent swings in the price of oil globally and domestic economic difficulties, the price had increased to more than 200 Naira per liter at the conclusion of Buhari’s government.
2023–present: Tinubu’s leadership and the elimination of fuel subsidies.
2023: Gasoline prices significantly increased as a result of President Bola Tinubu’s announcement, made shortly after entering office, that all gasoline subsidies would be eliminated. Depending on the area and state of the market, gas prices could range from 500 to 700 Naira per liter by the middle of 2023.
The history of fuel prices in Nigeria shows a transition from significant government subsidies to a slow and ultimate complete deregulation, driven by domestic issues, international oil prices, and economic policies. Significant political and social reactions characterized each stage of this history, with increases in fuel prices frequently sparking demonstrations and the reversal of policies.
