Nigerians hit hard by rising fuel prices

Commuting to work in Lagos, Nigeria’s metropolitan area of ​​about 20 million people, has long been a hell of a job, but rising gas prices have made matters worse.

Fuel prices nearly tripled in Africa’s most populous country after newly elected President Bola Tinubu announced on Monday that the subsidies were “gone.”

This has caused transport costs to rise, causing food prices to skyrocket, and making electricity more expensive for those using generators.

Abdullah Akinyoda, a minibus driver in Lagos, said he felt “guilty” of having to double his prices and that the situation was “very difficult”.

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“Wages are not going up,” the 38-year-old said, so “people don’t leave their homes.”

Nigeria is rich in oil but has meager refining capacity. For years, he traded crude oil for refined oil from abroad, which he then subsidized for his domestic market.

This causes a huge leakage of income, foreign exchange and contributes to an increase in debt.

While experts have long advocated the removal of costly subsidies and applauded the new government’s move, there are growing concerns about the lack of action to mitigate the inflationary impact on food, electricity and transport.

“People can’t cope in Nigeria!” –

At the bustling Utako Market in the capital Abuja, Bo Eze, 45, sits on large bags of garri (Nigeria’s staple food made from cassava) stacked in a minibus.

With a 45 minute drive to market, he had to increase his prices after gasoline soared from about 190 to more than 500 naira per litre.

“It used to cost 35,000 naira (about $75) for one 50kg bag, but now it costs 45,500 (about $98),” he said. “People can’t handle it!”

His friend Augustin Ede, who sells goat meat nearby, said that transporting the animals has become more expensive.

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“I used to buy 15 goats to sell, but now I buy seven,” said the 60-year-old, looking annoyed and pointing at the carcasses lined up on a wooden table.

Client Prudence Ecuvero is eyeing a goat neck to cook at home.

“Usually I pay 3,500 or 4,000 (naira) but he says it’s 6,000 now… it’s not easy,” said the mother of four, who earns about $300 a month.

Not all prices have risen in the market, and some people are rushing to buy as much as they can now, anticipating the rise.

– Electricity cost –

Amnesty International in Nigeria has warned that while “countries must eventually eliminate all fossil fuel subsidies”, it is vital that the move be “accompanied by social safety nets and protection measures”.

More than 80 million people in Nigeria were living below the poverty line before the subsidies were removed, according to the World Bank. The United Nations has warned that more than a quarter of them will face acute hunger this year.

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In the northern city of Kano, which is hot at this time of year, Sheh Ahmad has to spend his evenings in the dark and with the fans turned off after a gas price spike.

Power supply in Nigeria is often unstable and many people, like the 48-year-old accountant, have generators, but they are now becoming too expensive to run.

“Firing up a generator to light our homes and power our fans at night has suddenly become a luxury we can’t afford,” he said. “Last night, not a single house on our street turned on the generator.”

Rising electricity costs also have an impact on businesses and their employees.

“I went to work this morning, but my boss asked me to come home. There was no work due to lack of electricity,” said Mustafa Abubakar, an IT intern.

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“I have no idea what measures they will put in place,” the 21-year-old said after his company told him they couldn’t afford to pay for gas and that the firm would “have to adjust.”