Business
Nigeria joins Ghana in the removal of fuel subsidies
Nigeria is ending fuel subsidies, an official said Sunday, a move that is sure to be unpopular in the oil-rich nation where citizens have come to expect cheap fuel as one of their few government benefits.
The Petroleum Products Pricing Regulatory Agency (PPPRA) will stop paying the subsidy to petroleum importers effective immediately, executive secretary Reginald Stanley said in a statement.
The government has said the move will save the country some US$8 billion, some of which will be dedicated to much-needed infrastructure projects. Previous attempts to lift the subsidies have been met with nationwide strikes.
“Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding,” the statement read.
However, less than an hour after Sunday’s announcement, some gas stations in the commercial capital of Lagos had stopped selling gas, presumably in the hope of selling it post-subsidy for more than the current price of about US$1.70 per gallon (45 cents per liter).
A similar move in neighboring Ghana last week raised prices by about 15 percent, said oil and gas analyst Dolapo Oni.
Nigeria, an OPEC member nation producing about 2.4 million barrels of crude oil a day, is a top supplier to the U.S., but virtually all of its petroleum products are imported after years of graft, mismanagement and violence at its refineries.
