Opinion: Nigeria Doesn’t Have Cheap Fuel — We Have Expensive Poverty

By George Omagbemi

The argument that Nigerians enjoy “cheap” petrol because pump prices are below the global average misses the most important question: affordable for whom?

Fuel prices cannot be judged by pump prices alone. They must also be measured against income and purchasing power.

Nigeria’s statutory minimum wage remains ₦70,000 monthly, although implementation varies across states. The NBS reports that about 92.7% of employment was informal in Q1 2024, meaning millions of Nigerians do not receive a guaranteed monthly wage.

Using ₦1,200 per litre and a conventional 22-working-day, eight-hour month, a worker earning ₦70,000 makes roughly ₦398 per hour. One litre therefore costs about three hours of minimum-wage work.

That strengthens the argument: fuel affordability is about income, not simply price.

For petty traders, artisans and farmers whose earnings fluctuate, the burden can be heavier. Rising petrol prices also increase transport and distribution costs, pushing up food prices and other essentials.

This is why international fuel-price charts can be misleading. A litre may be cheaper in Nigeria in nominal terms while consuming a larger share of a worker’s income.

So, when someone presents a global fuel-price chart as proof that Nigerians should be grateful, ask a better question: how much of a worker’s time and income does one litre consume?

Nigeria may have cheaper petrol than some countries. But cheap fuel is not necessarily affordable fuel.