In a move that has sent shockwaves through Nigeria, the country’s new President, Bola Tinubu, announced the cessation of government-funded fuel subsidies, leading to a near tripling of gas prices. This decision has triggered widespread panic-buying across the nation, with long lines forming at gas stations as Nigerians scramble to stock up on fuel before the impending price hike.
The announcement came during Tinubu’s inaugural speech, where he declared, “the fuel subsidy is gone,” adding that it was unsustainable. He further stated that the rising costs could not be justified as resources dwindle. “We shall instead re-channel the funds into better investment in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions,” Tinubu added.
This drastic move marks a significant shift for a country where cheap gasoline has been a feature of daily life for decades and a lifeline to millions of Nigerians facing economic hardships. The last time the government tried to remove fuel subsidies in 2012, it sparked nationwide protests.
Following Tinubu’s speech, long lines immediately started forming at gas stations, as Nigerians rushed to stock up on fuel before the impending jump in prices. Some gas stations even stopped selling altogether. State-owned oil firm Nigerian National Petroleum Corporation (NNPC) confirmed that adjustments had been made to the retail price of fuel but did not immediately disclose its new prices.
At NNPC retail stations in the capital Abuja, the price of gas was swiftly adjusted from 195 Naira (42 cents) per liter to 537 Naira ($1.16), almost three times the former price. This decision to end the fuel subsidy is part of a broader effort by the government to deregulate the country’s vital oil sector and attract greater investment into oil and gas.
However, the move has been met with widespread criticism. Nigeria’s Labour Congress (NLC), an umbrella organization for trade unions, said it was “outraged” by Tinubu’s decision and demanded its immediate withdrawal. “By his insensitive decision, President Tinubu on his inauguration day brought tears and sorrow to millions of Nigerians instead of hope,” the group’s leader Joe Ajaero said in a statement.
This unfolding situation serves as a stark reminder of the delicate balance between economic reform and social welfare. As the Nigerian government grapples with the challenges of deregulation and economic diversification, the impact on the everyday lives of its citizens cannot be overlooked.
