Petrol Price Hikes Hitting Poor Hardest, Warns Agora Think-tank

A new study by Agora Policy Think-tank, has warned that Nigeria’s economic reforms, including petrol subsidy removal and naira float, are slamming the poorest hardest, with families skipping meals and businesses shutting down amid skyrocketing costs.

The report, presented by Dr. Mohammed Shuaibu from the University of Abuja’s Department of Economics at the Agora Policy Stakeholders Dialogue in Abuja on Thursday, maps how petrol prices jumped from an average of N161 per litre to more than N1,200, while electricity tariffs in some areas rose from N68 to about N225 per unit.

“These changes have significantly increased the cost of living across the country,” Dr. Shuaibu said, citing data showing the price of a healthy meal climbing from N515 in mid-2023 to around N1,611 by July 2025.

Transport fares between cities have nearly doubled, he added.Households surveyed for the study reported trekking longer distances, eating fewer meals daily, and cutting electricity use to cope.

“Children, women, and the elderly are the most affected,” the report stated, with many families borrowing money just to buy food.Small businesses and farmers face similar pain, as higher fuel and power costs inflate expenses.

Some owners told researchers they have raised prices, laid off staff, or closed shop entirely to stay afloat.Government relief efforts fell short, the study found. Cash transfers of N75,000 and the new minimum wage arrived late for many and proved too small to cover surging food, housing, and healthcare bills.

Dr. Shuaibu urged the government to phase in major reforms gradually, with support measures ready upfront. “Improve the national social register for quick aid to vulnerable groups,” he recommended, alongside tax breaks for transport and agriculture to ease food and travel costs.

The think-tank also called for clearer public communication on reform reasons, paired with empathy for citizens’ struggles.

The findings contrast with upbeat macro data shared at the same event by CBN deputy governor Muhammad Sani Abdullahi, who hailed falling inflation and reserve growth, but underscore the human cost as Nigeria pushes economic recovery.