DEBATES over the Nigerian government’s poor support for vulnerable Nigerians are getting heated, with the US-Iran conflict also creating more economic problems for many citizens.
Transport and energy logistics have continued to eat into Nigeria’s household spending, as many workers pay more for goods and transport.
Despite the recent surge in global oil prices, driven by escalating tensions in the Middle East and resulting in a windfall for Nigeria, the Federal Government has ruled out a possible return of petrol subsidy
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed the government’s position during a media briefing at the G-24 on the sidelines of the launch of the April 2026 Global Financial Stability Report by the International Monetary Fund (IMF), in United States.
The government’s decision has further fueled the debate on what model of economic support Nigerians should expect from their leaders, with some countries, such as Australia, India, Pakistan, and Egypt, already taking some supportive steps for citizens as the US-Iran conflicts compound economic problems and inflation among nation.
More so, the National Bureau of Statistics (NBS) latest data on inflation at N15.38 per cent in March 2025 is a further confirmation of the worrying resurgence of inflationary pressures in the economy.
The ICIR reports that the implications are far-reaching. Rising energy costs have quickly translated into higher transportation costs, increased food prices, and escalating production and distribution expenses.
The dominance of food and transport in the inflation basket has also adjusted household consumption patterns in response to rising prices.
According to the statistics office, food and transportation -related costs remain the most significant contributors to March inflation
“Food inflation stood at 14.31 per cent year-on-year, while core inflation -which captures broader price pressures-rose to 16.21 per cent. These figures are particularly troubling, given their direct impact on household welfare,” former director general of Lagos Chamber of Commerce and Industry, Muda Yusuf, told The ICIR.
He added, “Transportation costs, which are heavily influenced by fuel prices and logistics inefficiencies, continue to exert strong upward pressure on prices across sectors. The transmission mechanism is simple: higher transport costs raise the cost of moving food, goods and services nationwide, thereby amplifying inflation.
Yusuf also suggested the need for improved security in farming communities, strengthening rural infrastructure and logistics, enhancing access to inputs and financing, and promoting mechanisation and modern farming techniques.
“Invest significantly in mass transit systems, reduce reliance on fragmented private transport systems, introduce a regulatory framework to curb exploitative pricing and improve urban mobility infrastructure,” he added.
The Chief Executive Officer of Financial Derivatives, Bismarck Rewane, who commented on the development, said,” The government may enjoy oil windfalls, but ordinary people are seeing income shortfalls, especially when fuel costs continue to rise.”
He warned the government not to return to PMS subsidy, but to “ring-fence the extra crude revenue for targeted relief — cash transfers, food, transport — because subsidy benefits the rich more and wrecks the budget.”
“We cannot intervene in the war but must intervene in Nigeria’s economy to absorb the shock. “You win by not losing” — don’t let the war bankrupt the budget or crush households,” he added.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.