Rising fuel prices are driving up transportation costs across Nigeria, leaving millions of households with little left for essential needs like food.
According to new data, petrol prices have soared nearly five times over the last 22 months, hovering between N800 and N900 per litre, with projections suggesting a rise to N930 per litre in the coming weeks. This has led to significant hikes in transportation fares across the country.
Transporters have increased fares by 20% to 100%, which in turn has pushed up logistics costs for food sellers—costs that are now being passed on to consumers at the market.
“The impact on low-income Nigerians is particularly severe,” stated SBM Intelligence. “Small businesses and traders reliant on transportation for goods distribution face increased operational costs, leading to higher consumer prices.”
Data Highlights:
– Bus fares for interstate travel: Up by 403.5% in seven years
– Airfare prices: Increased by 280.7%
– Water transport fares: Rose by 148.8%
Many Nigerian families now struggle to afford three square meals daily as inflation bites harder. A recent report reveals that 3 out of 10 workers spend over 20% of their salary on transportation alone.
Samson G. Simon, Chief Economist at ARKK Economics and Data Ltd, pointed out that even salaried Nigerians are finding it difficult to maintain a nutritious diet due to reduced disposable income.
“Only 2.4% of Nigerians earn above N200,000 monthly,” Simon said. “The vast majority earn below N100,000, with 27.8% earning under N35,000, and 17.1% currently unemployed”
States Worst Hit by Food Inflation
A National Bureau of Statistics (NBS) report shows that food inflation declined slightly in February 2025, but prices remain alarmingly high in several states. Staples like yam tubers, potatoes, maize flour, cassava, and soya beans have all experienced sharp price hikes over the last year.
As inflation continues to rise, many Nigerians are forced to make painful choices—cutting back on meals just to afford transportation to work and school.
