Managing Your Money as Fuel Prices Rise in Nigeria

Introduction: Life After Subsidy

“From ₦500 to ₦1,200—na so my bus fare from Ikorodu to the next junction increase from  last year December to this year July — just 8 months.” That’s the reality many Nigerians are facing since the removal of fuel subsidy. The ripple effects of petrol hikes affects —food, transport, schooling, and even healthcare.

Since food inflation crosses above 30% in late 2024, according to the National Bureau of Statistics (NBS),  transportation costs have also nearly doubled in major cities like Lagos, Abuja, and Port Harcourt. For households and businesses to be able to rival the effects of these costs, it now means serious money management.

This guide breaks down practical, and relatable strategies to stay afloat in Nigeria’s new fuel economy.

How Rising Fuel Prices Hit Your Pocket

Here’s where the squeeze is coming from:

Example: A barber who formerly spent around  12000  on generator fuel now spends more than  ₦40,000 this year. To stay afloat , he had to increase haircut prices from ₦700 to ₦1,200.

Moves to Survive

1. Evaluate Your Budget

• Track all your expenses.
• Adjust your budget for  higher transport, food, and fuel costs using  the 60/30/10 rule :60% needs, 30% wants, 10% savings.
• Cut down unnecessary luxuries like fast food, impulse shopping, or  needless subscriptions.

2. Slash Transport Costs

• Make use of commercial cabs, BRT or danfo instead of Uber/Bolt for regular commutes.
• Search for trusted carpooling crews 
• If your office allows, negotiate a few days of remote work per week.
• Consider moving closer to work if transport eats 20–30% of your salary.

Tip:  Cutting Uber trips from 10 rides a month to 2 saves ~₦40,000 monthly.

3. Reduce Generator Dependence

With petrol hike,  small generators are financial traps.

• Invest in inverter or solar kits for basics like lights and Wi-Fi. It might seem expensive initially, but a wiser investment.
• Use rechargeable lamps and fans.
• Run gens only for essentials (water pumping, fridge).

Comparison Chart: Gen vs Inverter

4. Buy in Bulk 

• Use wholesales or bulk- buying markets.
• Join community cooperatives for group bulk buys.
• Plan your shopping trips to save on transport.

5. Extra Income Streams

• Freelancing: Writing, design, VA work 
• POS business
• Online sales: Clothes, foodstuff, cosmetics.
• Tutoring

6. Cut Subscriptions & Non-Essentials

• Downgrade DSTV to GOtv or streaming bundles.
• Share family Netflix/Spotify plans.
• Switch to weekly data plans instead of monthly or daily overspend.

7. Energy Efficiency is Key

• Switch off appliances not in use.
• Purchase LED bulbs & inverter ACs — they might seem more expensive but cost- saving. 
• Cook in bulk and reheat. It saves gas.
• Use solar lamps at night.

8. Strengthen Your Emergency Fund

Fuel hikes = more unexpected expenses.

• Save ₦5,000–₦10,000 monthly
•  Target 3–6 months’ worth of expenses.

9. Use Price Comparison & Cashback Tools

• Compare prices on online  apps like Jumia, Temu, Konga to find discounts.
• Use bank apps and telecoms that give cashback or loyalty points.

10. Stay Financially Informed

• Follow finance blogs like this.
• Listen to finance podcasts
•  Read finance books, especially Nigerian written. 

For Business Owners: Protect Your Margins

• Review pricing regularly (communicate with customers).
• Use bulk buying.
• Shift partially online.
• Explore renewable energy grants and SME loans.

Conclusion: 

Fuel price hikes are outside your control, but how you manage money is within your control. Discipline is now a new skill. By cutting waste, diversifying income, and planning smarter, you can stay financially stable even as costs soar.

The truth is, tough times force better discipline.