ActionAid urges FG to cushion impact on Nigerians as energy cost bites

ActionAid Nigeria, AAN, has called on the Federal to cushion the impact on Nigerians as energy cost bites harder as a result of the ongoing U.S.-Israel war on Iran.

In a statement signed by the Country Director, AAN, Dr Andrew Mamedu, AAN said that, “despite the sustained impact of this global crisis, there has been no clear or coordinated response from the Federal Government of Nigeria to cushion its effects on citizens.”

It said “apart from a limited intervention by the Oyo State Government, which announced a ₦10,000 wage support initiative, there has been little visible action across federal and state levels. This inaction, one month into the crisis, is deeply concerning.

“At current price levels, Nigeria is earning significantly more per barrel than before the crisis. Before the escalation of the conflict, global crude oil prices averaged approximately $75 to $80 per barrel. Since the crisis intensified, prices have risen to about 100 dollars per barrel due to supply disruptions in the Middle East. 

“Nigeria’s crude oil production currently averages between 1.3 and 1.5 million barrels per day. This increase in global prices translates into higher potential national earnings and a portion of these windfall revenues should have been transparently redirected toward cushioning the effects of rising fuel prices on Nigerians. 

“However, these gains have not been reflected in any form of relief for citizens.

“ActionAid Nigeria has conducted rapid community engagements across several states and confirms that the impact cuts across all segments of society. 

“As of today, Petrol prices are currently selling between ₦1,200 and ₦1,400 per litre across many parts of the country, while diesel prices remain persistently high.

“Nigerians have been grappling with these increases for weeks. Transport fares have surged, food prices continue to rise, and the cost of basic goods and services has escalated beyond affordability. 

“With stagnant incomes and high inflation, millions are being pushed deeper into poverty. Workers, transport operators, farmers, students, and small business owners are all experiencing severe strain.

“Small and medium enterprises are scaling down or shutting operations due to rising diesel and logistics costs.

“Informal workers are facing declining incomes, while farmers and food distributors are struggling with increased transportation costs, worsening food insecurity.

“Across communities, households are adopting distress coping mechanisms.

“Families are skipping meals, children are missing school due to transport costs, and many are resorting to borrowing to survive.

“There is also a rise in unsafe transport alternatives and informal fuel markets. These are clear indicators of widespread economic stress.”

Speaking in Abuja, the Country Director of ActionAid Nigeria, Andrew Mamedu said, “It is unacceptable that Nigerians continue to suffer the consequences of global oil price increases while the country fails to translate its oil wealth into protection for its people. 

“The current crisis is not only a result of global tensions but also a reflection of longstanding policy failures, weak regulation, and the absence of adequate social protection systems. Other countries are not standing idle. 

“Governments across the world are taking decisive steps to shield their citizens by stabilising fuel prices, supporting public transport systems, reducing avoidable supply costs, and strengthening safety nets for vulnerable populations. Nigeria must demonstrate the same urgency and responsibility.”

The Country Director also noted that, ‘‘Several countries have taken deliberate steps to cushion the effects of rising global oil prices on their citizens. In Thailand, the government has used its Oil Fuel Fund to cap prices, suspended petroleum exports, and increased domestic natural gas production to manage shortages. 

“Likewise, in Indonesia, the government used public funds and subsidy compensation to absorb part of the shock and limit sudden hardship. In addition, some countries in Asia have introduced demand-management measures such as work-from-home policies, shortened work weeks, public energy conservation campaigns, and financial support to households in response to global fuel price pressures linked to the ongoing crisis.

“In light of the current situation, ActionAid Nigeria calls on the Federal Government, in collaboration with state and local governments, to urgently: Deploy a coordinated emergency response within a defined timeframe to protect citizens from further economic harm. 

“This response must include the rapid rollout of targeted cash transfers to low-income households, vulnerable workers, and affected informal businesses using existing social registers and payment systems. 

“Now is the time to ensure that additional revenues generated from increased crude oil prices are transparently allocated to citizen-focused relief measures rather than solely retained in reserve accounts.

“Introduce a time-bound reintroduction of fuel subsidies, including both petrol and diesel, to cushion the impact of rising energy costs on households and small businesses during this period of volatility.

“Provide financing and operational support for public transport systems on major routes to directly suppress fare increases. This must include the establishment and public communication of a strictly time-bound fuel price stabilisation mechanism with clear funding sources and accountability measure.

“Implement the suspension or reduction of selected taxes, port charges, and avoidable logistics costs contributing to fuel price escalation.

“Designate and protect food distribution, health logistics, and other essential supply chains as priority sectors with targeted cost relief.”

He also urged the private sector to take proactive measures to support workers during this period. In addition to remote work options, companies should provide transport support, cost-of-living adjustments, flexible work arrangements, and other welfare measures to ease the burden on employees.

Adding that State and local governments must complement federal efforts by strengthening community-level safety nets, supporting local food systems, monitoring market practices to prevent exploitation, and ensure that interventions reach vulnerable populations without delay.