Many sections of Nigeria, including Lagos, Ogun, Abuja, and Niger, are experiencing a fuel shortage, which is causing long lines at gas stations. In Lagos and Ogun, black marketers have taken advantage of the situation and are charging outrageous prices for fuel, ranging from ₦1,200 to ₦1,500 per litre. The scarcity was ascribed to problems with vessel discharge operations by the Nigerian National Petroleum Company Limited (NNPC). Over the weekend, things became worse despite the NNPC’s promises to fix the problem. To make matters worse, gasoline shortages have prevented depots in Apapa, Lagos, from filling vehicles.
While illicit marketers supplied fuel for roughly ₦1,200 per litre, Filling Station prices in Abuja ranged from ₦660 to ₦800. Oil marketers acknowledged that stock was low in the depots and voiced optimism that the NNPC’s intervention would return supplies to normal in a week or so. Due to the shortage, private depot fuel prices have skyrocketed to ₦700 per litre, considerably higher than NNPC rates. Similar fuel shortages affected major South-South towns including Benin City and portions of Edo State, with prices per litre ranging from ₦591 to ₦800.
Residents of the nation are facing difficult economic times.
More so, Black Market rates as high as ₦1,300 per litre were recorded in northern states like Gombe and Jos. Driving for hours in Katsina and Taraba was not possible due to the lengthy lines at gas stations. Residents of the nation are already facing difficult economic times, and this shortage has made commuting much more expensive. Because there is not enough capacity for domestic refining, Nigeria’s fuel supply chain is mostly dependent on the importation of refined petroleum products.
Furthermore, the only company that imports petroleum and oversees its distribution to filling stations and depots around the country is the Nigerian National Petroleum Company Limited (NNPC). Nigeria is the greatest oil producer in Africa, but because of its deteriorating refineries, a huge amount of its refined petroleum is imported. In order to guarantee a consistent supply of petroleum to fulfill national demand, the NNPC manages the whole supply chain, from importation to distribution. Nigeria has traditionally used roughly 55 million litres of petrol each day on average.
Various groups in Nig. have been severely hit by the current fuel shortage.
However, this supply is frequently interrupted by inefficient distribution and Infrastructure issues. In 2023, the average cost of gasoline at the pump was approximately ₦500 per litre. However, in times of scarcity, prices might surge, as demonstrated by the recent rise in black market prices to as much as ₦1,500 per litre. Inconsistent gasoline distribution has also resulted in depots occasionally receiving less than half of the necessary quantity, which causes shortages and lengthy line-ups at gas stations.
In Nigeria, fuel scarcity is not a recent occurrence. Notable events happened in 2015 and 2017, mostly as a result of distribution issues, delayed imports, and shortages of foreign exchange. Government action, including the importation of emergency petroleum supply and the implementation of market-stabilizing regulations, was usually used to address these crises. Still, these were frequently band-aid rather than long-term treatments. Many groups in Nigeria have been severely hit by the current fuel shortage. Adeola Adedayo, a commuter in Lagos, vented her aggravation by saying: “I spend hours waiting in line for fuel, just to be charged outrageous rates by black marketers. My everyday travel and work are being impacted by it.”
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Company owners have also been severely impacted. Emeka Umeh, an Abuja transport operator, says, “Our operating costs have increased due to the fuel scarcity.” Our clients are not thrilled when we have to raise fares, but we are powerless to avoid it.” The effects are significantly worse in rural areas. Sam Adegoke, an Ipokia, Ogun State resident, bemoaned, saying, “Being in a border area means we have fewer filling stations.” We now depend on black traders, who might bill us up to ₦1,200 per litre. It is getting intolerable.” These varied viewpoints demonstrate the serious and pervasive effects of the fuel shortage on Nigerians’ daily lives.