Get ready for some breaking news that will impact your daily lives!
Petrol Prices on the Rise: A New Reality?
In a move that has sent shockwaves through the nation, the Dangote Petroleum Refinery has announced a significant price hike for Premium Motor Spirit (PMS), or petrol as we commonly know it. The new ex-depot (gantry) price stands at ₦875 per litre, a substantial increase from the previous ₦774. But here's where it gets controversial: this adjustment is expected to trigger a chain reaction, with retail stations nationwide soon displaying higher price tags.
A senior official from the refinery justified the move, citing global crude oil market volatility and the need to keep up with replacement costs. Despite Nigeria's growing domestic refining capacity, the impact of these global factors cannot be ignored.
The increase in the gantry price sets a new standard for petrol pricing across the entire supply chain. While the exact pump price revisions will vary depending on individual marketers and logistics costs, industry experts predict that some states could see retail prices approaching ₦1,000 per litre. This is a worrying prospect for many, especially given the potential knock-on effects on transport fares, goods prices, and operational costs for businesses.
The Bigger Picture: Geopolitics and Energy Security
Energy analysts attribute this price shift to ongoing geopolitical tensions and supply concerns in major oil-producing regions. These factors have added significant pressure to international crude markets, and experts warn that continued market disruptions and higher crude prices could further impact petrol and diesel pricing locally, even as Nigeria strives to reduce its reliance on imported fuel.
The Dangote Refinery, a true powerhouse located in Lekki, Lagos, is one of the largest single-train refineries globally. It has played a crucial role in supplying petrol and other refined products in Nigeria, helping to reduce the country's dependence on foreign fuel. However, the influence of global crude benchmarks, which are often tied to geopolitical developments, cannot be overlooked. Even with a strong domestic supply, these global fluctuations can still impact local pricing through replacement cost calculations.
The Impact on Nigeria's Economy
Nigeria's transport and logistics sectors, highly sensitive to fuel costs, are bracing for renewed pressure as petrol prices adjust upward. Higher petrol costs typically translate into increased operational expenses for businesses, which may pass on these costs to consumers in the form of higher prices for goods and services. This could potentially contribute to a rise in consumer prices in the short term, impacting households and businesses alike.
Analysts caution that if international crude prices continue to climb and surpass key resistance levels, further price adjustments at both the gantry and pump levels could be on the horizon in the coming weeks.
The refinery's pricing action comes at a time when policymakers are grappling with the delicate balance between energy security, currency stability, and economic cost pressures. While domestic refining has provided a cushion against import reliance, global market shocks continue to have a significant influence on local fuel economics.
Observers argue that this development highlights the urgent need for continued diversification of energy sources, improved logistics efficiencies, and strategic stock management. These measures are essential to mitigate the impact of external shocks on domestic fuel prices and ensure a more stable energy landscape for Nigeria.
Credit Crunch: A Challenge for Nigeria's SMEs
In other news, Nigeria's small and medium-sized enterprises (SMEs) are facing a tightening credit market, despite record lending by development finance institutions. This situation raises concerns about the effectiveness of existing financing interventions and their reach within the SME sector.
The Bank of Industry (BOI) reported disbursing an impressive ₦636 billion to over 7,000 businesses in 2025, its largest annual outlay to date. These funds were distributed across various sectors, including manufacturing, agribusiness, infrastructure, ICT, services, and the creative economy. The funding was supported by international sources and federal government intervention programmes.
However, stakeholders within the SME community paint a different picture. The National President of the Association of Small Business Owners of Nigeria (ASBON), Dr. Femi Egbesola, highlights that most small businesses still struggle to access affordable financing. He attributes this to high-interest rates, stricter lending conditions, and a declining risk appetite among commercial banks.
"Access to credit has become increasingly restrictive in practice," Egbesola stated, emphasizing that borrowing costs and compliance requirements have made available funds inaccessible to many SMEs. He further explained that banks are prioritizing capital preservation in the face of macroeconomic uncertainty and recapitalization pressures, shifting their lending focus towards government securities that offer lower risk and predictable returns.
ASBON describes this financing gap as structural rather than temporary, noting that Nigeria is home to over 40 million SMEs, many of which are nano and micro enterprises operating as kiosks, corner shops, or small workshops. The association warns that limited access to capital is already impacting business survival, with many SMEs operating below capacity, scaling down, or shutting down entirely. This poses significant risks to job creation and economic growth.
ASBON also highlights a decline in non-bank funding sources, such as grants and corporate support programmes, further exacerbating the financing challenges faced by SMEs.
While BOI reported that ₦178 billion of its 2025 financing went to SMEs, a larger share of ₦375 billion was allocated to large enterprises. This reflects a lender preference for borrowers with stronger financial capacity. BOI maintains that its interventions have supported job creation and enterprise expansion nationwide, including targeted programmes for youth-led, women-owned, and rural businesses.
Industry analysts and business operators agree that financing constraints remain a widespread issue, despite these interventions. They also point out the limited capacity of institutions like the Development Bank of Nigeria and the Bank of Agriculture to compensate for the decline in private-sector credit.
This financing imbalance has emerged as a policy concern for the administration of Bola Ahmed Tinubu, which has prioritized industrial expansion and enterprise development as part of its economic reform agenda.
In response to the situation, Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), called for targeted, concessionary financing and credit guarantee schemes to improve borrowing conditions for SMEs. He urged the Central Bank of Nigeria (CBN) to enhance policy transmission and moderate interest rates, warning that without addressing infrastructure and regulatory constraints, SMEs would remain financially excluded.
Breaking Down Barriers: ECA's Initiative for African Trade
In a move to empower small and medium enterprises (SMEs) and other businesses, the United Nations Economic Commission for Africa (ECA) has launched simplified step-by-step guides through its African Trade Policy Centre (ATPC). The aim is to help these enterprises participate more effectively in the African Continental Free Trade Area (AfCFTA) and access cross-border markets.
The guides were developed in response to repeated concerns raised by the African private sector, particularly SMEs, about the lack of accurate and easily understandable information on engaging in intra-African trade and benefiting from AfCFTA preferences.
Speaking at the opening of a continental workshop, Melaku Desta, Acting Director of ECA's Regional Integration and Trade Division, explained that the initiative focuses on simplifying the bureaucratic steps involved in cross-border trade. This includes obtaining trade licenses, certificates of origin, and meeting product health and safety requirements in exporting and importing countries.
The workshop, titled "Tackling the Information Barrier in Intra-African Trade: Step-by-Step Guides for Trading under the AfCFTA," was held in February 2026 at the Trademark Hotel in Nairobi, Kenya. It was organized by ECA through ATPC, with financial support from Japan.
During the workshop, participants reviewed experiences from countries piloting the guides, gathered feedback from public and private sector stakeholders, and discussed capacity-building needs to support wider adoption. The guides are designed to be short, non-technical, and practical, serving as a foundation for digital Trade Information Portals that provide accurate and up-to-date trade information.
The step-by-step guides are currently being piloted in Ethiopia, Seychelles, Tanzania, Namibia, Sierra Leone, Cameroon, and Mauritania. Participants at the workshop shared valuable lessons from these pilot countries and launched several national guides alongside their digital trade portals.
ECA emphasized that this initiative is part of its broader efforts to reduce information barriers, improve trade facilitation, and enable SMEs to fully benefit from AfCFTA opportunities. By doing so, ECA aims to promote inclusive intra-African trade and empower businesses across the continent.
