Rising petrol prices and electricity tariffs in Nigeria are disproportionately affecting the country’s poorest, a new report by the Agora Policy Think-tank has revealed. The study, presented by Dr. Mohammed Shuaibu of the University of Abuja, shows that fuel prices have soared from an average of ₦161 per litre to more than ₦1,200, while electricity costs in some areas jumped from ₦68 to ₦225 per unit. Families are struggling to cope, with some skipping meals and cutting electricity usage just to make ends meet.
Dr. Shuaibu highlighted that transport fares between cities have nearly doubled, forcing households to trek longer distances. The price of a healthy meal has also surged from ₦515 in mid-2023 to ₦1,611 by July 2025. “Children, women, and the elderly are the most affected,” the report notes, as many families are forced to borrow money simply to buy food. Small businesses and farmers are similarly impacted, facing higher operating costs due to rising fuel and power prices.
The study also found that many small businesses have raised prices, laid off staff, or even closed entirely to survive. Government relief efforts, such as cash transfers of ₦75,000 and the new minimum wage, arrived late for many households and proved insufficient against soaring food, housing, and healthcare expenses. The human toll, the think-tank warns, is growing despite positive national economic indicators.
To address these challenges, Dr. Shuaibu urged the government to implement reforms gradually, ensuring support systems are in place for vulnerable groups. Recommendations include improving the national social register to deliver quicker aid, providing tax breaks for transport and agriculture, and communicating reforms clearly with empathy for citizens’ struggles.
The Agora report contrasts with upbeat macroeconomic data presented at the same event by CBN deputy governor Muhammad Sani Abdullahi, who highlighted falling inflation and growing reserves. While national economic indicators may appear promising, the study underscores the urgent need to consider the real-life hardships facing ordinary Nigerians as the country pursues economic recovery.
source: Leadership