An economist and former Special Adviser on Industrialisation at the African Development Bank, Banji Oyelaran-Oyeyinka, has explained why petrol priced around N1,300 per litre is still beyond the reach of many Nigerians, particularly those earning the N70,000 minimum wage.
In a statement issued on Saturday, Oyelaran-Oyeyinka cautioned against comparing fuel prices by simply converting the naira into foreign currencies, describing such comparisons as misleading and inaccurate.
He noted that Nigeria’s economic realities—marked by low income levels, high inflation, and weak purchasing power—mean that petrol remains expensive for most citizens regardless of its nominal price.
According to him, fuel pricing should not be assessed in isolation, as it is closely tied to broader economic conditions and income levels.
He emphasized that affordability is better measured through purchasing power rather than exchange rate comparisons, explaining that a more realistic approach is to consider how long an average worker must work to afford fuel.
“Even if petrol appears cheaper when converted to dollars or pounds, it does not mean it is affordable for Nigerians,” he said.
Meanwhile, petrol prices have surged significantly in recent weeks, rising to between N1,361 and N1,380 per litre in Abuja from earlier levels of N875 to N900.
The increase follows multiple upward price adjustments by the Dangote Refinery, which raised its gantry price to about N1,200 per litre in March.