The removal of fuel subsidies in Nigeria is having an impact beyond its borders, particularly in neighboring Benin. In Benin’s economic capital, Cotonou, the price of smuggled gasoline known as “Kpayo” has doubled from 350 to 700 CFA francs (0.5 to 1 euro) per liter. Jeannine, a gasoline seller, has experienced a slowdown in business as customers now prefer to buy fuel from petrol stations.

The sudden increase in prices came after Nigerian President Bola Ahmed Tinubu ended fuel subsidies in Nigeria two weeks ago. The move aims to address the unsustainable financial burden of subsidies and curb the large-scale smuggling of subsidized fuel to neighboring countries.

However, the decision has been met with surprise and discontent among the population. Many expected the new president to bring some benefits or favors before implementing challenging measures. The immediate increase in fuel prices has caught people off guard.

Tinubu defended the decision by stating that Nigeria should not continue to support smugglers and subsidize neighboring countries. The removal of subsidies has been unpopular domestically, but it has also had a direct impact on the price of smuggled gasoline in Benin.