Fuel Price Hike: Gov. Seyi Makinde Approves N10,000 Wage Support for Oyo Workers

Oyo State Governor, Seyi Makinde, has approved a monthly transportation bonus of N10,000 for state workers as part of measures to cushion the impact of rising living costs.

The governor made the announcement on Monday, March 23, 2025, during the supervision of the YEAP-SAFER support disbursement and stakeholder engagement programme held at the Fashola Agribusiness Hub, Oyo.

According to Makinde, the initiative will run for an initial period of three months, with effect from April, targeting workers in ministries, departments, and agencies across the state, including local government.

“I am happy to announce that all workers in Oyo State, including the local governments, starting from April, at least for the first three months in the first instance (maybe it would be extended), will be given N10,000 additional as petrol/transportation support.”

He explained that the intervention is a direct response to the increasing cost of transportation, which has significantly affected workers’ welfare and productivity.

“This support is a direct response to the realities our workers are facing. Transportation costs have gone up, and as a responsible government, we must act to ease the burden,” Makinde stated.

The development comes as Nigeria recorded one of the sharpest increases in petrol prices globally following the geopolitical shock linked to the Iran war, highlighting the country’s persistent vulnerability to external oil market disruptions despite being a major crude producer.

Data from InvestorSight, citing Global Petrol Prices, showed that petrol prices in Nigeria have surged by 39.5 percent since February 23, 2026, placing the country second only to Vietnam, where prices spiked by 50 percent over the same period.

The development highlighted the paradox at the heart of Nigeria’s energy economy, Africa’s largest oil producer remains highly exposed to fluctuations in international refined product markets due to structural deficiencies in domestic refining capacity and pricing mechanisms.

The Iran war has triggered volatility across global energy markets, tightening supply expectations and driving up crude benchmarks. While oil-producing countries might typically benefit from higher crude prices, Nigeria’s downstream sector tells a different story.

Unlike countries with robust refining systems, Nigeria still relies significantly on imported petroleum products. This leaves domestic pump prices highly sensitive to international price movements, exchange rate pressures, and logistics costs.

The nearly 40 percent increase in petrol prices reflected this exposure, amplifying inflationary pressures in an already fragile economy where energy costs directly influence transportation, food prices, and overall cost of living.