Fuel Price: Cost of Transportation Rises, Leaves Many Nigerian Families With Little for Food

• The cost of living leaves many Nigerian households with little to spare after paying for transportation
• New data shows that the cost of transportation in Nigeria has significantly surged over the last seven years
• The rise in transportation costs reflects petrol prices, which have jumped nearly five times in 22 months over the period

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Rising transport costs fueled by surging petrol prices have pushed food prices beyond the reach of many Nigerians.

Many Nigerian households have been forced to reduce their food consumption to cope with the current economic conditions.

Petrol price drives the new cost of living

In the last 22 months, petrol prices have jumped significantly, hovering between N800 and N900 per litre, with projections suggesting they may rise to N930 per litre

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Transporters on their part increased the cost by 20 to 100% over the period.

The spike has increased logistics expenses for food traders, who pass the cost onto Nigerians buying at the market.

Many families now struggle to afford three square meals daily.

According to SBM Intelligence, Nigeria’s transport costs have increased over the last seven years.

Bus fares for interstate travel rose by 403.5%, airfares by 280.7%, and water transport fares by 148.8% over the period.

SBM Intelligence said:

“The impact on low-income Nigerians is particularly severe. Small businesses and traders reliant on transportation for goods distribution face increased operational costs, leading to higher consumer prices."

“Within a year, the price of staple foods for many cash-strapped Nigerians more than doubled."

Nigerians squeezed with new prices

The report further revealed that three out of 10 Nigerian workers spend over 20% of their salary on transportation, underscoring the heavy financial burden caused by rising transport costs.

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Samson G. Simon, chief economist at ARKK Economics and Data Limited, noted that even employed Nigerians struggle to afford nutritious diets due to shrinking disposable incomes, BusinessDay reports.

He said:

“The Nigerian Financial Services Market Report revealed that only 2.4% of Nigerians earn above N200,000 per month, while 3.7% earn between N150,000 and N200,000.

“About 8.3% earn between N100,000 and N150,000, while 19.3% earn N50,000 to N100,000. Roughly 21.2% earn between N35,000 and N50,000, while 27.8% earn below N35,000. Meanwhile, 17.1 percent of Nigerians are unemployed.”

10 states with highest cost of food prices

In a previous report by Legit.ng, the NBS noted that food inflation in February 2025 reduced after months of consecutive increases.

The new NBS report showed a list of states in Nigeria where residents were experiencing the fastest increase in food prices

The report stated that the drop in food inflation on a year-on-year basis declined in the average prices of food items like Yam tuber and potatoes. Others are Soya beans, Flour of maize/cornmeal, Cassava, and Bambara beans (Dried).

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng