Fiona Nanna, ForeMedia News

2 minutes read. Updated 10:10AM GMT Wed, 4 September, 2024

In a troubling turn of events, Nigerians are enduring a dual crisis marked by chronic fuel shortages and skyrocketing petrol prices. This latest hardship comes despite Nigeria’s status as one of the world’s leading oil producers. The country’s predicament is a stark reminder of its heavy reliance on imported petroleum products due to a largely inactive refining sector.

The Nigerian National Petroleum Corporation (NNPC), the state-run oil company, offers the lowest fuel prices compared to private operators. However, the situation has worsened as the NNPC has raised its prices, which has triggered similar hikes among independent garages. Currently, Nigerians queue for hours, paying anywhere from ₦430 (approximately $0.56) per liter at NNPC stations to ₦560 (about $0.74) or more at private fuel stations. In Ibadan, prices have surged to ₦850 (around $1.11) per liter, highlighting the severe strain on consumers.

The NNPC attributes its struggle to meet fuel demands to “financial strain” and escalating global oil prices. This explanation comes on the heels of the corporation’s declaration of a record profit of approximately ₦1.7 trillion (around $2 billion) last month, coupled with an initial public denial of its significant debt burden.

The fuel crisis has far-reaching implications, particularly as most Nigerian households depend on petrol and diesel to power their generators. The unreliable public power supply has made these fuels a necessity for daily life. The persistent fuel scarcities are exacerbating an already dire cost-of-living crisis. The recent government reforms aimed at ending fuel subsidies and freeing the currency have led to a sharp rise in inflation, compounding the financial strain on Nigerians.

The current situation reflects a broader economic struggle, highlighting the challenges faced by a nation rich in resources but grappling with systemic inefficiencies and economic instability.