Nigerians are today buying petrol at N1,200 per litre, with the fear looming that the price might further increase
Since President Tinubu assumed office, and made the popular declaration “Subsidy is Gone”, Fuel Prices has Increased by 237%.
The country has never experienced something like this in her history, with the government adamant that the subsidy regime has come to stay.
Interviews and public opinion showcase a populace left in shock and agony. Many cannot comprehend what is happening, as even the newly approved – but not yet effective – minimum wage erodes in value.
Fuel subsidy was introduced in Nigeria in the 1970s as a strategic reaction to the issues posed by rising worldwide oil prices and their impact on domestic fuel expenses.
The subsidy, spearheaded by personalities like Alhaji Shehu Shagari and maintained by institutions like the NNPC, sought to offer economic assistance and stability.
While the policy achieved its immediate goals, it also highlighted the complexities of managing oil revenues and the need for ongoing adjustments in Nigeria’s economic policies.
It is a matter of history, there is a reason this has never happened before.
During the oil boom in the 1970s, Nigeria introduced fuel subsidy to ensure affordable energy for its citizens.
You see, the increase in Nigeria’s oil revenue significantly boosted our GDP, but it also brought about rising costs of living.
To solve this problem, General Yakubu Gowon used fuel subsidy to mitigate the impact of high global oil prices on domestic fuel costs and protect Nigerians from sudden increases in energy prices.
By subsidizing PMS, the government kept transportation and energy costs manageable for ordinary Nigerians.
Fuel subsidy helped stabilize prices and shielded Nigerians from the volatility of global oil markets.
However, while the subsidy provided short-term relief, it also introduced long-term challenges.
The financial burden of maintaining the subsidy on government finances became significant, leading to debates about its sustainability.
So when President Tinubu decided to remove fuel subsidy, there was the clear signal that the economy would crash.
But many thought the worst had past only for prices to rise above N1,000 in September 2024.
The Nigerian National Petroleum Corporation (NNPC) maintains that the petroleum sector is now deregulated, implying that the government no longer controls product pricing.
Interestingly, sector stakeholders, including Dangote Refinery, dispute this claim.
On Thursday, Vice President Kashim Shettima met with Minister of State for Petroleum Heineken Lokpobri and NNPC’s Group Managing Director Mele Kyari.
Following the meeting, Lokpobri informed the press that there is currently an adequate supply of petrol in the country, and fuel queues are expected to soon disappear.
Lokpobri added, “Prices may vary significantly between locations due to deregulation. With the government no longer setting prices, market forces now dictate the cost of products.”
The NNPC subsequently confirmed Lokpobri’s statements via their X account.
On the same day, Dangote Refinery issued a statement asserting that “the PMS market is strictly regulated, and all oil marketers and stakeholders are aware that we cannot set, fix, or influence product prices, as this falls under the jurisdiction of relevant government authorities.”
The refinery’s statement addressed recent claims that the NNPC had begun procuring PMS from them for distribution to Nigerians. Dangote Refinery clarified that these claims are unfounded, stating, “NNPC has not commenced lifting refined PMS from us.”
While all this is happening, we got reports that the NLC Chairman has been arrested by the DSS.
Nigeria Labour Congress (NLC) President Joe Ajaero was arrested and detained about a week after initially honouring a police invitation on August 28 over allegations of criminal conspiracy, terrorism financing, treasonable felony, and cybercrime. He was released the next day.
In a follow-up, Ajaero and NLC Secretary General Emmanuel Ugboaja were summoned to appear before the Deputy Inspector General of Police in Abuja on September 5 over charges of criminal intimidation, breach of public peace, and property damage.
“In furtherance of investigations into the alleged case of Criminal Intimidation, Conducts Likely to Cause Breach of Public Peace and Malicious Damage to Properties in which your name featured.
“You are requested to come along with Comrade Emmanuel Ugboaja or an interview with the Deputy Inspector General of Police, Force intelligence Department (FID) through the undersigned, at SPO’s Room 12, 2nd Floor, Force Intelligence Department (FID) Complex, Shehu hagari way, opposite Force Headquarters Area 11, Garki, Abuja on Thursday, 5th September, 2024 at 11am.
“On arrival, you may wish to call Mr. Usman on GSM number. Your cooperation in this regard is highly solicited, please,” the police’s second invitation read.
Ajaero, accompanied by human rights lawyer Femi Falana (SAN), complied with the summons and later addressed NLC members, reaffirming the union’s patriotism and resolve.
What do you think the government should do right now to save us in this situation. Share your thoughts in comment section.
