Nigeria Economic Update, Issue 8

The National Bureau of Statistics’ Premium Motor Spirit Price Watch report for January 2026 revealed that the average retail price of petrol stood at ₦1,034.76 during the month under review. This represents a 17.77% year-on-year decrease from ₦1,258.34 recorded in January 2025, and a 1.32% decline relative to ₦1,048.63 recorded in December 2025. The reduction in fuel prices reflects increased domestic production from the Dangote Refinery and enhanced market competition following the removal of the fuel subsidy. State-level analysis reveals considerable variation in retail prices across the country. Cross River State recorded the highest average price at ₦1,171.77, followed by Rivers at ₦1,160.92 and Nasarawa at ₦1,149.13. In contrast, Ekiti, Enugu and Kaduna States reported the lowest average prices at ₦946.90, ₦946.92. and ₦947, respectively. At the zonal level, the South-South recorded the highest average price at ₦1,076.04, while the South-West posted the lowest at ₦1,009.30. The decline in PMS prices suggests improved fuel supply conditions and distribution efficiency, with potential positive spillover effects on transport and production costs nationwide. Nevertheless, persistent interstate price disparities point to underlying logistical constraints in certain regions. To sustain price stability, the government should continue to strengthen domestic refining capacity, improve transport and storage infrastructure, and enhance market monitoring to reduce regional imbalances.

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