Nigeria, Africa’s leading oil producer, on Thursday
warned that jobs could be at risk, as a weeks-long fuel
crisis showed no signs of easing.
Long queues have been seen for days outside filling
stations, flights have been grounded and generators that
kick in when the country’s patchy public electricity
supply goes off have run silent, leaving many without
power.
A man carries jerrycans to search for fuel in Lagos,
on May 21, 2015. Long queues formed at petrol stations
across oil-rich Nigeria on May 21 following a row
over subsidy payment to petrol importers as well as sale
of government oil blocks to private investors, union
officials said. AFP PHOTO
Vendors hawk fuel by the roadside in Lagos, on May
21, 2015. Long queues formed at petrol stations across
oil-rich Nigeria on May 21 following a row over
subsidy payment to petrol importers as well as sale of
government oil blocks to private investors, union
officials said. AFP PHOTO
Nigeria, Africa’s leading oil producer, on Thursday
warned that jobs could be at risk, as a weeks-long fuel
crisis showed no signs of easing.
Long queues have been seen for days outside filling
stations, flights have been grounded and generators that
kick in when the country’s patchy public electricity
supply goes off have run silent, leaving many without
power.
“Many companies have shut down because they cannot
get diesel to fuel their plants,” Musa Yusuf, of the
Lagos Chamber of Commerce and Industry, told
AFP.
“Unless the situation is redressed, companies may be
forced to lay off (staff).”
Addressing the crisis looks likely to be the first major
task for incoming president Muhammadu Buhari, who
takes office next Friday.
– Empty tanks –
Nigerian motorists have borne the brunt of the
shortages, with long queues at petrol stations in major
cities such as Lagos, the capital Abuja, the oil-
producing hub of Port Harcourt and Kano in the
north.
Drivers in Lagos have increasingly abandoned their
cars, easing the megacity’s notorious traffic gridlock,
but more than doubling prices for commuters on public
transport on many routes.
Black market and legitimate petrol vendors were doing
a brisk trade, selling at about 300 naira (150 US cents,
70 euro cents) a litre — well above the official price of
87 naira.
“I have been at this (filling) station since yesterday
(Wednesday),” said Rasaq Olamitoye on Awolowo
Road, the main thoroughfare in the upmarket suburb of
Ikoyi island.
“I had to sleep in the car because I don’t have enough
fuel to drive out of the queue. There is no hope as the
station is not selling.”
At one filling station, motorists and young men with
jerrycans jostled to buy supplies.
“It is a shame that an oil-producing nation like
Nigeria is going through all this hardship,” said one
motorist, who refused to give his name.
At Lagos domestic airport on Thursday morning,
passengers were told all flights were delayed because
there was no aviation fuel.
“It is not even clear if the fuel tanker is in the
airport,” one airport worker said. “They delay each
flight for 50 minutes each flight and then review.”
– Subsidies –
Nigeria produces some two million barrels of crude oil
a day but despite its huge reserves, it imports much of
its fuel due to a lack of refining capability — a
situation blamed on corruption and mismanagement.
To make fuel affordable, Nigeria has frozen the price
of a litre of petrol at 87 naira, lower than the market
rate. Fuel importers expect subsidy payments from the
government to make up the difference.
When the government does not pay, fuel runs scarce,
frequently causing gridlock and panic.
But the subsidy programme has been found to be rife
with corruption, including false claims and
overpayments.
In January 2012, the government tried to end the fuel
subsidies, causing petrol prices to more than double.
But it was forced to partially reinstate them after tens
of thousands of people took to the streets in violent
protests that left more than a dozen dead.
– Indefinite strike –
Unions say the crisis has arisen because the cash-
strapped Nigerian government — hit by the global slump
in oil prices — owes 200 billion naira in outstanding
subsidies to oil importers and marketeers.
Last month, outgoing Finance Minister Ngozi Okonjo-
Iweala said fuel importers were paid 156 billion naira.
But fuel depots have been shut until the debt is paid in
full, preventing truck drivers from filling up their
tankers with petrol since last week and distributing it
for sale.
At the same time, unions are angry at the sale by the
Nigerian Petroleum Development Company — the
upstream subsidiary of the state-run oil firm — of two
oil-producing fields to private investors.
Unions claim the sale did not follow due process and
want it reversed.
Vendors hawk fuel by the roadside in Lagos, on May
21, 2015. Long queues formed at petrol stations across
oil-rich Nigeria on May 21 following a row over
subsidy payment to petrol importers as well as sale of
government oil blocks to private investors, union
officials said. AFP PHOTO
Nigeria, Africa’s leading oil producer, on Thursday
warned that jobs could be at risk, as a weeks-long fuel
crisis showed no signs of easing.
Long queues have been seen for days outside filling
stations, flights have been grounded and generators that
kick in when the country’s patchy public electricity
supply goes off have run silent, leaving many without
power.
“Many companies have shut down because they cannot
get diesel to fuel their plants,” Musa Yusuf, of the
Lagos Chamber of Commerce and Industry, told
AFP.
“Unless the situation is redressed, companies may be
forced to lay off (staff).”
Addressing the crisis looks likely to be the first major
task for incoming president Muhammadu Buhari, who
takes office next Friday.
– Empty tanks –
Nigerian motorists have borne the brunt of the
shortages, with long queues at petrol stations in major
cities such as Lagos, the capital Abuja, the oil-
producing hub of Port Harcourt and Kano in the
north.
Drivers in Lagos have increasingly abandoned their
cars, easing the megacity’s notorious traffic gridlock,
but more than doubling prices for commuters on public
transport on many routes.
Black market and legitimate petrol vendors were doing
a brisk trade, selling at about 300 naira (150 US cents,
70 euro cents) a litre — well above the official price of
87 naira.
“I have been at this (filling) station since yesterday
(Wednesday),” said Rasaq Olamitoye on Awolowo
Road, the main thoroughfare in the upmarket suburb of
Ikoyi island.
“I had to sleep in the car because I don’t have enough
fuel to drive out of the queue. There is no hope as the
station is not selling.”
At one filling station, motorists and young men with
jerrycans jostled to buy supplies.
“It is a shame that an oil-producing nation like
Nigeria is going through all this hardship,” said one
motorist, who refused to give his name.
At Lagos domestic airport on Thursday morning,
passengers were told all flights were delayed because
there was no aviation fuel.
“It is not even clear if the fuel tanker is in the
airport,” one airport worker said. “They delay each
flight for 50 minutes each flight and then review.”
– Subsidies –
Nigeria produces some two million barrels of crude oil
a day but despite its huge reserves, it imports much of
its fuel due to a lack of refining capability — a
situation blamed on corruption and mismanagement.
To make fuel affordable, Nigeria has frozen the price
of a litre of petrol at 87 naira, lower than the market
rate. Fuel importers expect subsidy payments from the
government to make up the difference.
When the government does not pay, fuel runs scarce,
frequently causing gridlock and panic.
But the subsidy programme has been found to be rife
with corruption, including false claims and
overpayments.
In January 2012, the government tried to end the fuel
subsidies, causing petrol prices to more than double.
But it was forced to partially reinstate them after tens
of thousands of people took to the streets in violent
protests that left more than a dozen dead.
– Indefinite strike –
Unions say the crisis has arisen because the cash-
strapped Nigerian government — hit by the global slump
in oil prices — owes 200 billion naira in outstanding
subsidies to oil importers and marketeers.
Last month, outgoing Finance Minister Ngozi Okonjo-
Iweala said fuel importers were paid 156 billion naira.
But fuel depots have been shut until the debt is paid in
full, preventing truck drivers from filling up their
tankers with petrol since last week and distributing it
for sale.
At the same time, unions are angry at the sale by the
Nigerian Petroleum Development Company — the
upstream subsidiary of the state-run oil firm — of two
oil-producing fields to private investors.
Unions claim the sale did not follow due process and
want it reversed.
“Right now, there have been no serious efforts by
government to address the two issues and so the
scarcity will persist,” said Tokunbo Korodo, from the
National Union of Petroleum and Natural Gas
Workers (NUPENG).
Babatunde Oke, spokesman for the white collar oil
workers union PENGASSAN, said indefinite strike
action would disrupt production at the disputed oil-
producing fields.
Neconde Energy Limited, the private operator of one
of the blocks, said it had not acted illegally in buying a
45 percent stake in the block and the remaining 55
percent shares were still held by government
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