As Petrol Sells for N1,030 per Litre, Nigeria to “Save” N5.7 Billion Per Day from Eradicating Subsidy

Nigeria’s recent decision to sell petrol at ₦1,030 per litre marks a significant shift, signaling the complete removal of the decades-old fuel subsidy. This move follows the Nigerian National Petroleum Company Limited (NNPCL) allowing marketers to purchase refined petrol directly from Dangote Refinery, ending its monopoly as the sole buyer. The subsidy had been a huge financial burden on the government, costing the country up to ₦5.7 billion daily​.

For years, Nigeria heavily subsidized fuel to keep prices low for its citizens. However, the soaring costs, compounded by global oil market fluctuations and the country’s limited refining capacity, made maintaining the subsidy unsustainable. The deal with Dangote Refinery allows petrol to be priced closer to market levels, relieving the NNPC and the government of this fiscal load, although the exact mechanisms and long-term effects are still unclear​(

While this is a bold economic step, there remain unresolved questions, such as how the government plans to mitigate the impact on everyday Nigerians and whether this deregulation will lead to further adjustments in the petroleum sector​.