Gridlock in Nigeria Amid Fuel Shortages and Price Hikes

Nigerians are grappling with severe fuel shortages and skyrocketing prices, creating widespread chaos across the country. The state-owned Nigerian National Petroleum Corporation (NNPC), which imports and distributes fuel to private sellers, has cited its debts and the rising global oil prices as the main reasons for the current fuel scarcity. The situation has left many Nigerians stranded as long queues form at petrol stations nationwide. In Lagos, commuters are experiencing long wait times at bus stations due to the scarcity of operating buses. Some residents have resorted to walking long distances, as public transport fares have doubled along several routes. On Tuesday, the NNPC announced an increase in petrol prices from 617 naira ($0.40, £0.30) to 897 naira per litre. While NNPC stations offer the cheapest fuel in the country, private garages are charging even higher prices, with some states like Oyo, Kano, and Kaduna seeing petrol sold for as much as 1,200 naira per litre.

Many fuel stations across the country have shut down, either due to fuel shortages or to adjust their prices. In Abuja, the capital, most stations remain open, but long queues are a common sight as desperate drivers wait for their turn. Some have even slept in their cars overnight, hoping to secure fuel the next day. However, with fuel stations not rationing supply, many fear their wait may be in vain. In Kano, a major trading hub in northern Nigeria, frustrations are running high. Aminu Danyaro, a motorcycle rider in Kano, shared his experience, saying, “Most of the fuel stations here in Kano are closed because they want to adjust their pumps to the new price. I was able to get fuel at 950 naira at a particular station, but other places have already started selling at 1,200 per litre.” The black market is thriving in Kano, with traders buying fuel from stations and reselling it at inflated prices along the roadside. The Nigeria Labour Congress (NLC), the country’s main trade union body, has expressed its sense of betrayal over the price hikes. The NLC explained that it had accepted the new minimum monthly wage of 70,000 naira ($44, £34) in July based on an agreement with the government that the petrol price would not be increased. However, this recent price hike has shattered that understanding.

President Bola Tinubu, who came to power last year, shocked Nigerians on his first day in office by removing the fuel subsidy that had kept prices low. This decision, along with other policies, has contributed to Nigeria’s worst economic crisis in a generation. Last month, cost-of-living protests, dubbed “10 days of rage,” were held across the country as citizens voiced their dissatisfaction with the current situation. Amid the crisis, Nigerians are placing their hopes on the newly constructed Dangote Petroleum Refinery, owned by Africa’s richest man, Aliko Dangote. The refinery, which was recently announced to have started producing petrol, represents a significant milestone for Nigeria. Despite being Africa’s largest producer of crude oil, Nigeria imports all its refined fuel. However, it remains unclear how long it will take before Nigerians see a ready availability of petrol or a reduction in prices.