In a world where energy costs are rising and putting immense pressure on businesses and households, Nigeria has emerged as one of Africa’s most affordable places to buy diesel, ranking 5th on the continent, according to global price data released on April 14, 2025.
With an average pump price of ₦992 per litre, Nigeria trails only Algeria (₦352.22), Turkmenistan (₦456.67), Egypt (₦483.31), and Angola (₦522.34) on the affordability ladder. The ranking, based on diesel prices converted to the Nigerian naira, positions the country ahead of oil-rich peers like Sudan (₦1,047.81), Libya (₦43.16), and even Saudi Arabia (₦706.80) despite Nigeria’s continued reliance on imported refined petroleum.
Not Cheap, But Cheaper
To the average Nigerian motorist or generator-dependent household, ₦992 still feels high, especially when stacked against previous years when diesel hovered between ₦300–₦600. But in the African context, Nigeria’s pricing reflects a rare advantage, offering a form of cost relief amid inflationary pressures and rising operating expenses.
This price point, while modest in appearance, means real savings for truckers, market traders, factory operators, and rural dwellers who depend on diesel for transportation, refrigeration, or electricity. The price difference of ₦100–₦300 per litre compared to other countries could be the edge that keeps some businesses afloat.
Behind the Affordability
Analysts credit this pricing to a combination of strategic importation, government-controlled margins, and a quasi-subsidized downstream framework, even though fuel subsidies were officially scrapped for petrol in 2023. Diesel’s market, though liberalized, still enjoys some pricing buffers through forex interventions and preferential import licensing.
“Diesel is one of those fuels that Nigeria can’t afford to fully liberalize just yet,” said an energy policy analyst in Abuja. “It’s too deeply embedded in economic activity.”
Pressure on the Horizon
But there’s a caveat. Many experts caution that Nigeria’s spot in the top five may not last. With the Dangote Refinery expected to increase domestic supply, there’s hope for even cheaper diesel but also fear that the removal of informal pricing buffers could spike costs if local logistics or forex instability persist.
Also, geopolitical tensions and global oil market fluctuations continue to add uncertainty. If international crude prices spike or the naira weakens further, Nigeria’s diesel advantage could evaporate quickly.
Conclusion
Nigeria’s current diesel affordability represents a rare moment of economic breathing room for a country struggling with energy insecurity, currency depreciation, and infrastructure gaps. Whether this comfort is temporary or the start of long-term market stability remains to be seen.
For now, ₦992 per litre buys more than just diesel; it buys time, margin, and operational hope for millions navigating Nigeria’s complex economic terrain.
