Economy
Nigeria Hit with the Worst Fuel Scarcity Yet
Nigeria is the main oil producer in Africa and is currently the continent’s largest crude oil exporter. This status however holds no value for Nigerians who have now been accustomed to fuel scarcity in varying degrees being a constant challenge.
In 2024 alone, the country has been hit with two fuel scarcity crises. The first occurred from April to May when the fuel cost increased by 68.01% on a year-on-year basis from N842. 25 per litre in April 2023 to N1415. 06 per litre in April 2024. The second crisis is ongoing. It has seen the petrol price rise to N1,050 per liter in a matter of days from the average of N770.54 recorded in July 2024. This fuel scarcity is another addition to the ongoing cost of living crisis Africa’s largest economy is experiencing.
Nigeria’s Cost of Living Crisis Continues to Soar
During his inaugural speech on May 29, 2023, President Tinubu announced an end to fuel subsidies in the country, citing that continuing subsidies were unsustainable and a drain on public finances. The president acknowledged in another address on June 12, 2023, that although halting the subsidies added a burden on the people of Nigeria it was crucial to the country’s economic survival. Over a year after this bold move by the government, most Nigerians are struggling to make ends meet sparking protests across the country.
NOIPolls, an independent pollster in West Africa disclosed in 2023 that 63% of adult Nigerians surveyed across the country desire to relocate to other countries. The lack of economic opportunities is the primary motivator for leaving Nigeria. As the “Japa”— a colloquial term for emigration— itch among Nigerians intensifies, the youth who can’t leave have sought to earn an income remotely working for foreign companies, gambling on international online casinos, and working multiple low-level jobs.
The prices of food, cooking gas, medication, and public transport have risen since President Tinubu assumed office in May 2023. This rising cost of living has been a result of the naira’s poor performance against the dollar and the instability of the country’s economy. Nigerians have had to survive through high levels of inflation not experienced before in the country for three decades.
According to the World Food Programme, 26.5 million people across the country are projected to face acute hunger between June and August 2024. This is an almost 40% increase from the 18.6 million Nigerians recorded to have faced food insecurity at the end of 2023. This new fuel scarcity crisis has seen Nigerians make long queues at filling stations to access petrol, led to significant increases in transport fares, and resulted in losses for businesses that rely on fuel to power them.
NNPC Explains Cause of Current Fuel Scarcity
In response to rising concerns about fuel scarcity in the country, the Nigerian National Petroleum Corporation Limited (NNPCL) through Dapo Segun, the Vice President, attributed the ongoing fuel scarcity to the impact of the recent heavy rains, lightning, and thunderstorms across the country. Mr Segun explained that the rains had caused saltation in the Estragos channel making navigation difficult and thus hindering the transportation of petroleum products across the country. Additionally, Seun reported that fuel discharge from both onshore and tankers had been suspended occasionally due to lightning and thunderstorms. These three natural extreme weather conditions have made distributing petroleum products across the country challenging.
As the NNPCL vows to resolve the fuel scarcity crisis soon, Nigerians are looking to two other refineries that were set to begin operations to ease the cost of fuel burden. The Dangote Refinery is expected to begin selling petrol in Nigeria by the end of this August. The chairman of the Dangote Group, Aliko Danknote, who had committed to this milestone is positive that his company will meet the target. Additionally, the Port Harcourt refinery is expected to be operational and supplying petroleum products across the country by September 2024 as assured by the group chief executive officer of the NNPCL, Mele Kyari. This will be the third time the refinery’s operational month has been moved this year following its mechanical completion in December 2023.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), on the other hand, has accused the NNPCL of actively contributing to fuel scarcity by failing to provide petroleum products to its members even after payment. IPMAN disclosed that even though payment to the state oil company was made three months ago members have been forced to purchase petroleum products from private depots whose prices are significantly higher. IPMAN is now calling on the government and other key stakeholders in the oil industry to intervene in the situation to lessen these hardships.
Citizens of Africa’s largest crude oil producer and exporter are now no longer surprised by fuel scarcity in their cities. While many try to find ways to survive under the new economic hardships, others opt to leave the country in search of greener pastures. It is evident that Africa’s largest economy is on the brink of collapsing should the government not turn around the economic situation soon.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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