Fuel queues have stretched across major Nigerian cities as the Nigerian National Petroleum Corp. (NNPC) struggles to supply gasoline to local traders and depots. The situation has sparked protests, leaving the federal government clueless on how to appease angry citizens.
In a country where paying people to protest against protests is becoming a norm, it’s no surprise the streets are heating up. President Bola Tinubu’s government, in a clever play of mismanagement, opened gasoline imports to private companies last year. However, foreign currency shortages and a petrol price cap mean the NNPC remains the sole importer. Meanwhile, the much-hyped Dangote Refinery is still not processing gasoline.
NNPC spokesperson Olufemi Soneye tried to explain away the chaos, blaming the fuel supply and distribution issues in Lagos and the Federal Capital on a hitch in vessel discharge operations. This explanation came just as queues began forming over the weekend.
Since the government ended gasoline subsidies in May 2023, gasoline prices at retail stations have skyrocketed from around 617 naira per liter to over 800 naira ($0.5063). This price surge is fueling Nigeria’s already high inflation and worsening the cost of living crisis.
Adding to the problem, NNPC owes gasoline suppliers over $6 billion, affecting supplies and leading the company to seek financing to settle these debts.