Despite Subsidy Removal, Nigeria’s PMS Price Remains Cheapest in Africa

By Zekeri Idakwo

Despite recent hike in fuel price, Nigeria still has the cheapest pump price among neighbouring African countries.

According to Global Petrol Prices (GPP), Nigeria is the exception, with prices at nearly half the cost of its neighbours.

A look at the current prices per liter of PMS across the continent shows Nigeria at the lowest price point, with the cost of fuel at ₦648.930 as at 25th of December, 2023.

Meanwhile, in neighbouring countries like Togo, Cameroon, Ghana, Mali and Ivory Coast, the cost of fuel has skyrocketed to more than ₦1,000 per litre.

In comparison, the price of PMS in Togo is ₦1,032.69, in Cameroon, it’s ₦1,108.63, in Ghana, it’s ₦976.63, in Mali, it’s ₦1,315.17, and in Ivory Coast, it’s ₦1,328.83. This shows a significant disparity in fuel prices between Nigeria and its neighbours, with President Tinubu’s undisclosed or secret subsidy payments likely playing a major role in the price differences.

This disparity in prices is likely due to a variety of factors. Nigeria’s fuel price stability is largely due to the government’s continued veiled fuel subsidy payments, which have kept prices artificially low.

However, experts believe this may create a strain on the government’s budget and it remains to be seen how long the subsidy payments can be sustained.