The removal of fuel subsidies in Nigeria, which was scheduled to take place in June, was accelerated by President Bola Tinubu's announcement. The new pump prices for fuel are expected to range between N488 to N550 per litre, as confirmed by a BusinessDay report. This will have a significant impact on the Nigerian economy, particularly in the logistics and transportation sector.

Logistics startups in Nigeria are preparing to raise their prices in response to the fuel price increases. Delivery prices are expected to increase by 20-50%, with the average delivery prices in Lagos ranging from N1,500 to N3,000. Startups anticipate a short-term slowdown in delivery requests as customers adjust to the higher prices.

The CEO of Sendstack, a Lagos-based logistics startup, mentioned that fuel costs are a significant driver of operating expenses, and they have been closely monitoring the fuel subsidy conversation. Another entrepreneur running Tamak Logistics mentioned the need to double the prices of deliveries due to the nearly tripled input cost resulting from the new fuel price.

Logistics companies expect a temporary decline in order volumes as customers may seek alternatives or reconsider the necessity of deliveries. The price-sensitive customers may reduce their demand for logistics services, impacting startups in the sector. Companies will need to adapt quickly to the changing landscape, potentially exploring bulk-delivery services and discontinuing same-day deliveries for non-essential items.

Mobility services such as Bolt and Uber have already seen noticeable price increases, but they have not yet made public comments regarding the fuel price increases.

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