Petrol is cheaper in Atlanta than in Nigeria

THIS week, as I refueled my car, I couldn’t help but be struck by the sharp contrast between petrol prices here in Metro Atlanta and in Nigeria.

In Metro Atlanta, fuel prices hover at $2.70 per gallon, which is equivalent to around 67 cents per liter. (Four liters make up a gallon.) Translating this into naira reveals a stark discrepancy. At the current exchange rate of 1,647 naira to the dollar, a gallon of petrol in Atlanta equates to approximately 5,200 naira or 1,102 naira per liter. That’s astonishingly cheaper than Nigeria’s prevailing rate of around 1,300 naira per liter.

This disparity grows even more troubling in light of the wildly differential minimum wage standards between Nigeria and the United States. In the United States, the federal minimum wage is $7.25 per hour, which amounts to roughly $1,200 a month. Converted into naira, this comes to nearly 1,974,000 (one million, nine hundred and seventy-four thousand) naira.

Note that almost no one earns the minimum wage. Even the lowest remunerated workers here earn above the minimum wage. For example, my 16-year-old daughter who works at an entertainment restaurant chain on weekends earns $13 an hour.

Meanwhile, the federal minimum wage in Nigeria is a piddling 70,000 naira, or around $42.55. In other words, Nigerians with a minimum wage of 70,000 per month pay a higher rate at the pump than Atlantans with a minimum wage of 1.9 million naira per month.

When one presents these figures, defenders of past and present Nigerian regimes— and clueless, stonyhearted neoliberal evangelists— often argue that it’s fruitless to compare Nigeria with the United States, the world’s largest economy.

Yet, it’s worth noting that the U.S. does not indulge in the luxuries afforded to Nigeria’s ruling political elites. For instance, while American presidents pay for their own meals, including the meals of their guests, Nigeria allocates billions for the upkeep of its first families.

Such contrasts illustrate not merely economic differences but also the broader question of public accountability and fiscal priorities.

In much of the developed world, government subsidies for fuel are deemed vital, particularly where public transport systems are not robust. In the U.S., for example, state governments sometimes provide targeted subsidies to cushion residents from high fuel prices.

The lower fuel prices in America are facilitated by state subsidies aimed at counterbalancing a lack of comprehensive public transit options, as is the case in Western Europe.

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