The Federal Government has defended the current price of petrol in Nigeria, linking the increase to ongoing economic reforms introduced by President Bola Tinubu, and insisting that fuel remains cheaper in the country compared to global benchmarks.
The Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, made this assertion on Tuesday during the commissioning of the agency’s new headquarters in Abuja.
According to him, although many Nigerians have expressed concern over rising pump prices, available data shows that fuel is still relatively cheaper in Nigeria than in several other major economies.
He explained that petrol in Nigeria currently averages about $0.88 per litre, which is lower than prices in countries such as the United States, India, and South Africa.
“People complain that petrol is expensive, but as a data-driven economist, I rely on facts,” he said.
He added that fuel costs are about 22 percent higher in the United States, 25 percent higher in India, and roughly 35 percent higher in South Africa compared to Nigeria, noting that global averages remain significantly above local prices.
Since the removal of fuel subsidy by the Tinubu administration, petrol prices have risen sharply from below ₦200 per litre to nearly ₦1,000, and in some locations, above ₦1,200 due to global supply pressures and geopolitical tensions.
Despite the surge, Adedeji maintained that the reforms have helped stabilise fuel availability across the country.
FG Cites Dangote Refinery, Naira-for-Crude Policy as Key Gains
He further argued that Nigeria’s energy situation has improved with the gradual impact of the Dangote Group refinery, saying local refining capacity is helping to reduce dependence on imports and strengthen supply security.
“Without these difficult decisions, fuel scarcity would have worsened. Today, supply is more stable because domestic refining is becoming more reliable than overseas imports,” he said.
Adedeji also praised the government’s Naira-for-Crude policy, describing it as a historic shift in Nigeria’s oil trade practices.
He noted that crude oil transactions in local currency had strengthened the economy and reduced pressure on foreign exchange reserves.
According to him, the policy has helped reposition Nigeria from a heavy importer of refined petroleum products to a country increasingly capable of exporting refined fuel, citing reports of shipments to other African markets.
He concluded that the reforms, though challenging, were necessary to ensure long-term stability and energy security in the country.
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