Business
Nigeria Fuel Prices May Rise as Middle East Crisis Deepens
Nigeria Fuel Prices May Rise as Middle East Crisis Deepens
Growing Middle East tensions triggered by ongoing military actions involving the United States and Israel against Iran may soon lead to higher fuel prices in Nigeria, following a surge in global crude oil prices to $72.87 per barrel.
The escalation followed a coordinated strike across multiple locations in Iran, including Tehran, significantly heightening geopolitical instability and fuelling fears of supply disruptions in global oil markets.
For Nigeria—where crude oil accounts for over 85 percent of export earnings and nearly half of government revenue—the implications are far-reaching. While higher oil prices could boost government income, analysts warn that Nigerians may soon face increased petrol (PMS) prices, especially in the current post-subsidy era.
Energy experts say the oil price surge presents a mixed outlook. Oil and gas analyst Ayodele Oni explained that while Nigeria could benefit from increased foreign exchange inflows, higher crude prices typically lead to higher landing costs for petrol, which are eventually passed on to consumers.
Similarly, energy expert Kelvin Emmanuel noted that Nigeria’s 2026 budget benchmark of $64.85 per barrel means the government stands to earn more revenue from rising oil prices. However, he warned that refineries will be forced to adjust fuel prices in line with market realities.
This includes domestic refiners such as the Dangote Refinery, which operates in a deregulated downstream environment where petrol prices are tied to crude oil costs, exchange rates, and operational expenses.
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Economic analyst Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), said geopolitical conflicts in the Middle East often trigger oil price spikes due to fears of supply disruptions—particularly around key shipping routes such as the Strait of Hormuz.
According to Yusuf, Nigeria could benefit from:
- Higher crude export earnings
- Improved foreign exchange inflows
- Stronger external reserves
- Increased FAAC allocations
However, he cautioned that Nigeria’s current oil production level of about 1.4–1.6 million barrels per day remains below capacity and is constrained by oil theft, pipeline vandalism, underinvestment, and infrastructure challenges. Without resolving these issues, the country may fail to fully capitalise on higher oil prices.
Yusuf also warned of inflationary pressures, noting that rising fuel costs could increase transport fares, food prices, manufacturing costs, and logistics expenses, worsening the cost-of-living crisis for Nigerian households.
Offering a more cautious outlook, energy economist Professor Wumi Iledare said the current oil rally may be temporary, explaining that modern oil markets operate on real-time data and rational expectations. He noted that unless the Middle East crisis leads to a sustained disruption in oil supply, prices may stabilise.
Energy law expert Professor Dayo Ayoade echoed this view, stating that many countries maintain strategic crude oil reserves, which could limit extreme price spikes. He added that even if prices approach $80 per barrel, Nigeria must remain cautious due to its debt obligations and oil-backed loans.
Ademola Henry Adigun, Chief Executive Officer of AHA Consultancies, said the crisis could further destabilise global energy markets, simultaneously boosting government revenue while raising petroleum product prices domestically.
Analysts stressed that to maximise potential benefits and minimise economic pain, Nigeria must:
- Strengthen anti-oil theft and pipeline protection measures
- Boost upstream oil production and investment
- Expand domestic refining capacity
- Save excess oil revenue during price surges
- Protect vulnerable households from inflation shocks
- Accelerate economic diversification beyond oil
Ultimately, experts describe the deepening Middle East crisis as a double-edged sword for Nigeria—offering short-term fiscal gains while posing serious risks of fuel price hikes, inflation, and economic hardship if not carefully managed.
Nigeria Fuel Prices May Rise as Middle East Crisis Deepens
Aviation
FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive
FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive
The Federal Airports Authority of Nigeria (FAAN) has introduced a temporary hybrid toll payment system at airports nationwide following heavy traffic congestion caused by the rollout of its cashless toll payment policy. The move comes after President Bola Tinubu directed the authority to ease implementation challenges to prevent travel disruptions.
FAAN Managing Director, Mrs. Olubunmi Kuku, told journalists in Lagos on Thursday that the decision followed severe gridlock at major airport toll gates, particularly Murtala Muhammed International Airport (MMIA), Lagos, as motorists struggled to adapt to fully digital payment methods. “He [the President] saw the traffic congestion and directed us to temporarily revert to a hybrid approach,” Kuku said. “This ensures smoother access while we refine the cashless system — it is a win for the industry.”
The hybrid model allows commuters and travellers to pay tolls using a combination of cash, prepaid FAAN cards, e-tags, debit cards, and other electronic options. Kuku emphasized that the arrangement will let FAAN continue its digital payment initiative while still accommodating users who have yet to register or activate electronic payment channels.
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She highlighted that the authority had registered over 100,000 users on its cashless platform between October 2025 and March 3, 2026, with around 60,000 sign-ups occurring in the final three days before the March 1 rollout deadline. The technology reportedly achieved a 99% success rate during initial operations, demonstrating strong potential for adoption once operational challenges are addressed.
Kuku explained that the initial rollout lacked a comprehensive pilot phase due to the pressure to meet the government’s deadline. The additional time granted by the Presidency now serves as an extended pilot period, enabling FAAN to raise public awareness, onboard private technology partners, and enhance monitoring mechanisms to prevent revenue leakages while cash payments are still allowed.
The MD noted that no new deadline has been set for the complete elimination of cash payments. The focus now is on refining the system, ensuring user convenience, and achieving a smooth transition to a fully digital tolling platform in line with global best practices in airport infrastructure management.
FAAN said the hybrid arrangement aims to prevent delays that could cause passengers to miss flights, while also maintaining transparency in revenue collection and improving overall airport operational efficiency.
FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive
Business
NNPC Raises Petrol Price to ₦933 in Lagos, ₦960 in Abuja
NNPC Raises Petrol Price to ₦933 in Lagos, ₦960 in Abuja
The Nigerian National Petroleum Company Limited (NNPC) has increased the pump price of petrol at its retail stations to ₦933 per litre in Lagos and ₦960 per litre in Abuja, triggering fresh concerns among motorists and businesses over rising fuel costs in Nigeria.
The national oil company raised the price by ₦103 in Lagos, moving from ₦830 per litre to ₦933, while motorists in the federal capital Abuja now pay ₦960 per litre, representing an ₦85 increase from the previous ₦875 price.
Checks on Wednesday showed that the new petrol price has already been implemented at several NNPC retail outlets, including stations at Apple Junction and Ago Palace Way in Lagos, while stations along Airport Road in Lugbe, Abuja, were dispensing petrol at the new ₦960 rate.
The latest fuel price hike comes shortly after the Dangote Petroleum Refinery increased its ex-gantry petrol price to ₦874 per litre on March 2, up from ₦774 per litre, a development that has influenced retail pricing across the downstream petroleum sector.
Industry analysts say the rise in petrol prices in Nigeria is closely linked to growing geopolitical tensions in the Middle East, which have unsettled global energy markets and pushed up crude oil prices.
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Recent market data shows that Brent crude oil rose to about $85 per barrel on March 3, compared with around $72 per barrel recorded on February 28, intensifying pressure on petrol landing costs for markets that still rely partly on imports.
Experts note that Nigeria’s deregulated fuel market means pump prices now fluctuate in response to international oil prices, exchange rate volatility, and supply chain costs.
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the federal government to ensure steady crude oil supply to domestic refineries, particularly as Nigeria seeks to strengthen local refining capacity.
The association warned that continued instability in global oil markets could weaken the naira, raise petrol prices further, and push inflation higher, thereby worsening the cost-of-living challenges faced by Nigerians.
Energy stakeholders have also stressed the importance of expanding local refining operations, including production from the Dangote refinery and rehabilitation of government-owned refineries, to reduce dependence on imported fuel.
The latest price adjustment reflects the ongoing transition in Nigeria’s downstream petroleum sector following the removal of fuel subsidies and the adoption of a market-driven pricing system.
Motorists across Lagos, Abuja and other major cities have expressed concern that rising petrol prices could increase transportation costs, food prices and overall inflation, placing additional pressure on households and businesses.
NNPC Raises Petrol Price to ₦933 in Lagos, ₦960 in Abuja
Business
TCAN Targets Logistics Reforms to Drive Economic Growth at 2026 Transport Summit
TCAN Targets Logistics Reforms to Drive Economic Growth at 2026 Transport Summit
The Transportation Correspondents Association of Nigeria (TCAN) has begun preparations for its 2026 Annual Transport Summit, placing Nigeria’s logistics value chain at the centre of national economic discourse.
Scheduled for September 2026 in Lagos, the summit will be held under the theme, “Unlocking Economic Growth Through Transportation Logistics.”
It is expected to draw major stakeholders across the aviation, maritime, rail and road transport sectors, alongside logistics service providers, policymakers, regulators, development partners and financial institutions.
In a statement, TCAN said the summit would critically examine how efficient transportation logistics can serve as a catalyst for sustainable economic growth, trade facilitation, job creation and regional integration, especially in the context of ongoing reforms and infrastructure investments within the sector.
Chairman of TCAN, Tola Adenubi, described transportation logistics as the backbone of economic development, stressing that the performance of Nigeria’s logistics ecosystem directly impacts the nation’s competitiveness.
“From cargo handling at airports and seaports to inland freight movement and last-mile delivery systems, the efficiency of Nigeria’s logistics architecture plays a decisive role in determining the competitiveness of the nation’s economy,” Adenubi said.
He noted that the 2026 summit would explore innovative strategies to strengthen the sector, including digital transformation, infrastructure financing models, public-private partnerships and regulatory reforms aimed at optimising performance.
Chairman of the 2026 Conference Committee, Suleiman Idris, said the summit would feature high-level panel discussions, keynote addresses and interactive sessions designed to assess the current state of Nigeria’s transportation logistics framework.
According to him, deliberations will focus on identifying bottlenecks hindering seamless cargo and passenger movement, examining the impact of multimodal transport integration on economic expansion, and highlighting investment opportunities within the logistics and supply chain ecosystem.
Idris added that experts at the summit would also provide policy recommendations targeted at enhancing operational efficiency and boosting Nigeria’s global competitiveness in trade and transportation.
As part of the programme, TCAN will confer its Champions of Transport Industry Development (COTID) certificates on selected government agencies and private operators that have made significant contributions to the advancement of Nigeria’s transportation sector.
Over the years, the TCAN Annual Transport Summit has evolved into a credible platform for constructive engagement between regulators, operators and other industry stakeholders.
The association said the 2026 edition aims to deepen policy conversations, promote transparency and accountability, and accelerate reforms capable of unlocking the full economic potential of Nigeria’s transport and logistics industry.
With logistics increasingly recognised as a key enabler of economic growth, industry observers expect the 2026 summit to set the tone for fresh strategies that could reshape Nigeria’s transportation landscape in the years ahead.
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