The ongoing petrol scarcity in Nigeria took a sharp turn when the Nigerian National Petroleum Corporation Limited (NNPCL) announced a sudden price hike, suspending fuel sales to independent marketers. This decision, amidst a fragile national economy, has sparked widespread outrage and intensified the suffering of ordinary Nigerians. The latest developments paint a bleak picture, as petrol prices soar, public transport fares skyrocket, and millions are stranded in what appears to be a national energy catastrophe.
The Rise of Fuel Costs: From Pain to Protest
On Tuesday, NNPCL shocked the nation by raising the price of Premium Motor Spirit (PMS) to N855 per litre at its retail outlets, effectively sidelining independent marketers. This sparked an immediate reaction from across the country. In Delta State, for instance, commercial tricycle operators known as keke riders took to the streets of Warri and Effurun in a dramatic protest. Their grievance was clear: the arbitrary price hike, coupled with an ongoing scarcity, has worsened the already dire economic conditions. But this protest was not just limited to the streets of Delta. Across the nation, commuters faced the cruel reality of limited transport options, being left stranded or forced to walk long distances as fuel stations either shut down or sold at exorbitant prices.
The Independent Petroleum Marketers: Victims of Corporate Overreach?
One of the most shocking revelations came from the Independent Petroleum Marketers Association of Nigeria (IPMAN), whose members were abruptly barred from accessing fuel despite having paid for the product months in advance. Hammed Fashola, the National Vice President of IPMAN, expressed disbelief at the NNPCL’s actions, describing it as a “very bad situation.” For many of these marketers, who had paid for fuel two to three months prior, the sudden suspension of sales has left them financially crippled, unable to serve their customers or recoup their investments.
Fashola did not hold back in his criticism of the NNPCL, accusing the state-owned corporation of prioritising major marketers at the expense of smaller, independent businesses. These smaller marketers have been forced to turn to private depot owners, who, due to higher operating costs, sell fuel at inflated prices. This not only creates a significant price disparity between major and independent marketers but also exacerbates the overall fuel crisis. Fashola’s statements reflect a deep frustration within the independent marketer community, who feel betrayed by a corporation that once promised to stabilise Nigeria’s energy supply.
The NNPCL’s Price Discrepancies: A Subsidy in Disguise?
The situation is further complicated by the NNPCL’s pricing policies, which have left many industry insiders questioning the corporation’s motives. Despite the steep hike to N855 per litre, Fashola claims that the NNPCL is still offering a form of subsidy, as the landing cost of petrol is significantly higher—around N1,200 per litre. This discrepancy suggests that the government may still be quietly subsidising fuel, despite its public stance on deregulation. Such a subsidy, if true, raises more questions than answers, especially given the government’s previous attempts to end fuel subsidies altogether, which were aimed at reducing public expenditure.
For now, the NNPCL remains tight-lipped, with no official communication on the reasons behind the suspension of sales to independent marketers. This lack of transparency is creating a fertile ground for speculation, with many wondering whether the price hikes and sales suspensions are part of a broader strategy to manipulate the market and consolidate power within the hands of a few major marketers.
The Dangote Factor: Will Relief Ever Come?
Amidst this crisis, hopes were briefly raised with the news of fuel imports from the Dangote refinery, touted as a potential saviour in Nigeria’s fuel woes. However, the situation remains murky. While three PMS-laden vessels arrived at the Apapa jetty in Lagos on Wednesday, it remains unclear when, or if, the arrival of these vessels will lead to a meaningful reduction in fuel prices. Even as the NNPCL attempts to sell off its old stock, Dangote’s influence on the market remains to be seen.
Independent marketers and consumers alike are watching anxiously to see whether Dangote’s entry into the fuel market will have any real impact on prices. For now, however, many are skeptical. As Fashola aptly put it, “There must be something that’s a factor… maybe that will bring the price to a reasonable level, I don’t know.” Nigerians are growing increasingly tired of waiting for these “maybes” to materialise, as every day that passes brings more hardship, longer fuel queues, and increased suffering for millions.
The Human Cost: Nigerians Stranded and Desperate
The ongoing fuel crisis has not only disrupted the supply chain but has also deeply affected the daily lives of Nigerians. Across the country, fuel scarcity has driven transport fares through the roof, leaving commuters in a state of despair. In major cities like Lagos, Abuja, and Port Harcourt, the few commercial buses that were available to transport passengers were only willing to carry those who could afford exorbitant fares. The price of a simple journey has more than tripled in some areas, forcing many Nigerians to either stay at home or trek for miles to get to work, school, or other essential destinations.
In Warri and Effurun, the epicentre of the keke protest, commercial tricycle operators and market women carried placards calling on President Bola Tinubu to intervene. Their demands were simple: bring fuel prices down to a manageable level, and provide relief to the suffering masses. Unfortunately, as fuel queues continue to grow and the price of petrol exceeds N1,000 per litre in some areas, these calls seem to be falling on deaf ears.
A Government in Crisis: TUC and NLC Fight Back
As the fuel crisis deepens, labour unions have stepped up their efforts to resist the government’s handling of the situation. The Trade Union Congress (TUC) and the Nigeria Labour Congress (NLC) have both condemned the latest fuel price hike, calling for its immediate reversal. The TUC, in a scathing statement, accused the government of showing a “blatant disregard for the welfare of the Nigerian people.” They argue that the latest increase in fuel prices, coupled with a hike in electricity tariffs, will only worsen the already high poverty levels in the country and could trigger widespread social unrest.
The NLC, on the other hand, has accused the government of reneging on an earlier agreement not to raise fuel prices without proper consultation with labour leaders. In a particularly fiery response, the NLC dismissed claims by the President’s Senior Special Assistant on Print Media, Abdulaziz Abdulaziz, that no such agreement existed. The union described Abdulaziz’s denial as “amusing” and called out the government’s dishonesty in handling the fuel price negotiations.
The labour unions have also hinted at the possibility of nationwide protests, warning that Nigerians cannot continue to bear the brunt of poor economic decisions. As social tensions rise, it remains to be seen whether the government will take steps to de-escalate the situation or continue with its current policies, which many argue are out of touch with the realities faced by ordinary Nigerians.
Who Is Really to Blame? A Flawed Government Strategy
While it is easy to place the blame solely on the NNPCL and its opaque pricing mechanisms, the truth is that this fuel crisis is part of a larger systemic failure within the Nigerian government. Critics argue that the Tinubu administration, much like its predecessors, has failed to create a sustainable energy policy that works for the people. Instead, the government continues to prioritise the interests of big businesses and multinational corporations, leaving ordinary Nigerians to suffer the consequences.
The fact that the Presidency has remained largely silent on the matter, save for a few weak denials, only adds to the public perception of a government that is either unwilling or unable to address the root causes of the fuel crisis. Moreover, the administration’s focus on so-called market reforms has done little to alleviate the economic hardships faced by the masses. With inflation at record levels, unemployment rising, and basic commodities becoming increasingly unaffordable, the government’s refusal to provide social safety nets or meaningful economic relief is a glaring oversight.
A Crisis with No End in Sight
As Nigerians continue to grapple with the fallout of the NNPCL’s latest price hike, one thing is certain: this fuel crisis is far from over. With no clear solution in sight and the government showing little urgency in addressing the issue, it seems that the country is heading towards a prolonged period of economic turmoil.
The arrival of the three fuel vessels at Apapa may offer temporary relief, but it will do little to solve the underlying issues of mismanagement, corruption, and poor governance that have plagued Nigeria’s energy sector for decades. Until the government takes meaningful steps to reform the sector, provide transparency, and prioritise the welfare of its citizens, the fuel crisis will continue to be a symbol of Nigeria’s broader failures.
What Must Be Done?
The Nigerian government, particularly the NNPCL, must take immediate action to address the fuel scarcity and price hikes that are crippling the nation. This means lifting the suspension on independent marketers, offering clear and transparent communication about pricing policies, and working to stabilise the fuel supply chain.
At the same time, labor unions, civil society organisations, and ordinary Nigerians must continue to hold the government accountable. Protests and strikes, while disruptive, may be necessary to force the government to act in the interest of the people rather than big businesses.
Nigerians deserve better than this. They deserve a government that listens to their needs, provides relief in times of crisis, and works to build a sustainable future for all. Until that happens, the fuel crisis will remain a dark cloud over the nation, casting a long shadow over its economic prospects and the lives of millions of its citizens.
The Role of the National Assembly: Can Lawmakers Intervene?
Amidst the mounting crisis, calls for intervention from the National Assembly have grown louder. Several senators and members of the House of Representatives have expressed concern over the government’s handling of the fuel scarcity and the role of the NNPC Limited. Some lawmakers have even suggested summoning key officials from the Ministry of Petroleum and the NNPCL for questioning.
However, the effectiveness of such interventions remains questionable. The National Assembly, while constitutionally empowered to hold the executive branch accountable, has historically been slow in addressing energy crises. Corruption, vested interests, and political manoeuvring have often paralysed any serious legislative action. Moreover, many lawmakers benefit from the status quo, either through connections to major oil marketers or involvement in the petroleum industry itself. This complicity undermines the credibility of the National Assembly and fuels public distrust in its ability to advocate for the people.
Some serving and former lawmakers, such as Senator Shehu Sani, have been vocal critics of the NNPCL’s policies, calling for a full investigation into the corporation’s dealings with independent marketers and the hidden subsidy regime. Yet, without widespread political will, such calls may remain nothing more than hollow rhetoric. The people of Nigeria are left wondering if their elected representatives will ever truly stand up for them in the face of an economic crisis that threatens their livelihoods.
Regional Disparities: A Tale of Two Nigerias
One of the most troubling aspects of the fuel crisis is the glaring regional disparities in its impact. In the northern regions of Nigeria, where infrastructure is less developed and supply chains are notoriously slow, the price of fuel has reached unprecedented levels, with some stations reportedly selling petrol for as much as N1,500 per litre. The scarcity is even more pronounced in these areas, as fewer fuel depots and distribution centres exist to serve the population.
In contrast, the southern regions, particularly Lagos and Port Harcourt, have fared slightly better due to their proximity to major oil facilities and depots. However, even in these urban centres, the fuel crisis has led to long queues, inflated prices, and growing frustration. The uneven distribution of fuel has exacerbated existing regional tensions, with many in the north feeling abandoned by a government that appears to cater primarily to the wealthier southern states.
This regional disparity is not new, but it has become more pronounced during this crisis. The north-south divide in Nigeria, driven by decades of underinvestment and political neglect, has created a situation where the effects of the fuel crisis are felt more acutely in some parts of the country than in others. This imbalance threatens to deepen the already fraught political and social divisions in Nigeria, as people in the north increasingly view the government as indifferent to their struggles.
Nigerians Turn to Black Market Solutions
With the NNPC’s price hike and the suspension of sales to independent marketers, many Nigerians have turned to the black market for fuel. While black market prices are often higher, the ease of access and the reduced waiting times at informal stations make it an attractive option for desperate consumers. In urban areas, black market vendors—commonly referred to as “fuel boys”—can be seen operating with impunity, selling petrol in jerry cans at inflated prices.
The black market, while providing short-term relief for some, has dangerous long-term implications. The fuel sold on the black market is often of lower quality, leading to potential damage to vehicles and machinery. Moreover, the rise of the black market undermines the formal economy, reducing tax revenues and increasing the influence of organised crime. The government’s failure to regulate and curb these illegal activities is yet another sign of its inability to manage the crisis effectively.
The International Angle: Global Oil Markets and Nigeria’s Vulnerability
Nigeria’s fuel crisis is not occurring in a vacuum. Global oil markets have experienced significant fluctuations in recent months, with rising demand and geopolitical tensions driving prices upward. For a country like Nigeria, which relies heavily on oil exports for revenue but imports the bulk of its refined petroleum products, these global dynamics have a direct impact on the domestic energy market.
However, Nigeria’s vulnerability to global oil price fluctuations is largely self-inflicted. Decades of mismanagement, corruption, and underinvestment in the country’s refining capacity have left it dependent on foreign refineries. Despite being one of the world’s largest oil producers, Nigeria’s inability to refine its own crude oil has forced it to rely on costly imports, which are subject to global market pressures.
The Dangote Refinery, which promises to significantly reduce Nigeria’s reliance on imported fuel, offers a glimmer of hope. Yet, as previously mentioned, its impact on the current crisis remains uncertain. Even if the refinery begins full operations in the near future, the long-term sustainability of Nigeria’s energy market will depend on the government’s willingness to reform the sector, root out corruption, and invest in domestic refining capacity.
Public Outcry Grows: Is Civil Unrest on the Horizon?
The longer the fuel crisis persists, the greater the risk of widespread civil unrest. Already, protests like those seen in Warri and Effurun are becoming more frequent, and labour unions are hinting at the possibility of nationwide strikes. The Nigerian people, already stretched thin by rising food prices, unemployment, and insecurity, may soon reach a breaking point.
The government’s attempts to maintain order through sporadic price adjustments and vague promises of future relief have done little to quell the growing frustration. If the Tinubu administration fails to act decisively in the coming weeks, it may find itself facing a full-scale national crisis.
Civil society organisations, opposition parties, and labour unions are all calling for immediate action. The NLC and TUC have both issued ultimatums, demanding that the government reverse the latest price hike and engage in meaningful dialogue with stakeholders. Should these demands go unmet, the unions have threatened to mobilise millions of workers for mass protests and strikes, potentially paralysing the country’s economy.
The fear of civil unrest is not unfounded. Nigeria has a long history of protests triggered by fuel price increases, most notably in 2012 when the removal of fuel subsidies led to nationwide demonstrations and strikes. The current crisis has all the ingredients for a similar uprising: a frustrated populace, a government perceived as out of touch, and a vital resource (petrol) becoming increasingly scarce and expensive.
What Can Be Done? Policy Recommendations
To prevent the fuel crisis from spiralling further out of control, the Nigerian government must take immediate and bold action. Here are a few policy recommendations that could help stabilise the situation:
Reinstate Subsidised Fuel Sales to Independent Marketers: The suspension of sales to independent marketers has created an artificial scarcity and driven prices up. By reinstating these sales and ensuring a more equitable distribution of fuel, the government can alleviate some of the pressure on the market.
Increase Transparency in NNPC Operations: The NNPC’s opaque pricing mechanisms and lack of communication have fuelled speculation and mistrust. The government must provide clear, transparent information on fuel pricing, subsidies, and distribution to regain public confidence.
Accelerate the Operationalisation of Domestic Refineries: While the Dangote Refinery holds promise, the government must also prioritise revamping existing state-owned refineries. A long-term solution to Nigeria’s fuel crisis lies in its ability to refine its own crude oil and reduce reliance on imports.
Engage in Meaningful Dialogue with Labour Unions: The government must engage in good-faith negotiations with the NLC, TUC, and other stakeholders to address their concerns and avoid nationwide strikes. A failure to do so will only exacerbate tensions and increase the likelihood of civil unrest.
Provide Immediate Economic Relief for Nigerians: To mitigate the impact of rising fuel prices, the government should consider providing direct financial assistance to low-income households. This could come in the form of cash transfers or subsidies for essential goods and services.
Strengthen Regulatory Oversight of the Black Market: The proliferation of black market fuel vendors is a symptom of the larger crisis, but it also contributes to the breakdown of formal market structures. The government must take steps to crack down on illegal fuel sales and ensure that fuel is sold through regulated channels.
Conclusion: A Test of Leadership
The ongoing fuel crisis in Nigeria is not just an economic issue; it is a test of leadership. President Bola Tinubu and his administration face a critical juncture in which their ability to manage a national crisis will be scrutinised by millions of Nigerians. The stakes are high, and the consequences of inaction or mismanagement could be dire.
As fuel queues grow longer, prices rise higher, and public frustration mounts, the government must act with urgency and decisiveness. The path forward is clear: transparency, accountability, and a commitment to the welfare of the Nigerian people. Anything less risks plunging the country into deeper economic turmoil and social unrest.
The Nigerian people are watching, and they will not wait forever. It is up to the government to rise to the occasion and provide the leadership needed to navigate this crisis. The time for action is now.