A recurrent issue. Nigeria regularly faces persistent fuel shortages causing enormous difficulties for the 219 million inhabitants of this West African country.
This shortage is taking its toll, leading to a resurgence of black market activity. Most of the gas stations, running dry, have closed, leaving street sellers in control. For several days, residents have been dependent on long queues, up to 2.9 kilometers in some cities including the capital Abuja. Consumers are therefore stuck or forced to pay higher rates for transport. Some students even had to give up returning to school.
The supply chain involved
The resulting consequences of the shortage are disastrous for Africa’s largest oil producer: electricity supplies remain unreliable, exchange rates have more than doubled, food prices have skyrocketed and essential services are paralyzed.
This crisis is mainly attributed to the removal of fuel subsidies in May 2023, which made it possible to lower the price of gasoline for consumers but weighed heavily on Nigeria’s public finances.
The complexities of the country’s fuel supply chain are also to blame. The spokesperson for the National Oil Company (NNPC), the main supplier of oil in the country, attributes this shortage to “logistical problems” which he says are being resolved. They would notably concern the unloading of fuel in the port of Lagos. The cost of its operations increased significantly in October to compensate for the instability of the naira (local currency) against the dollar. The company also accuses oil companies of exploiting the current situation to maximize their profits.
Accelerate the commissioning of Port Harcourt
However, for the Independent Petroleum Marketers Association of Nigeria (IPMAN), there are deeper systemic problems. More than 200 civil society groups and associations called on Tuesday for the resignation of Mele Kyari, the director of the NNPC, accused of mismanagement.
Gas station managers also asked the authorities to speed up as much as possible the commissioning of the Port Harcourt refinery, scheduled for December. Nigeria has four state-owned refineries but they have become obsolete and unused due to poor management. The country should have produced around 70 million liters of gasoline per day if its four refineries were operating optimally.
The National Association of Nigerian Students (NANS) has threatened to embark on mass action if the executive does not take immediate action. A threat taken very seriously by the government which has decided on an emergency supply of 15 days to guarantee the circulation of the product throughout the country thanks to the arrival of more ships.
Despite the government’s promises, the end of the oil crisis in the country still seems far away.
