Article summary
- Nigeria’s President Bola Ahmed Tinubu announced the removal of fuel subsidy, leading to panic and chaos in Lagos as fuel prices surged to N600 per litre.
- Fuel queues appeared in several parts of Lagos as Nigerians rushed to fill their tanks and increased fares for ride-hailing services added to the frustration.
- Some Nigerians blamed retailers for taking advantage of the situation, while others called for more context and transparency from the government regarding the fuel subsidy removal.
On Monday, Nigeria’s newly sworn-in President, Bola Ahmed Tinubu declared that the Nigerian government has removed fuel subsidy, a statement which has created panic and chaos in Lagos, as Nigerians buy fuel for N600 per litre.
Fuel queues started appearing in some parts of Lagos as early as Monday evening as Nigerians rushed to fill their tanks in reaction to a declaration that there will be no fuel subsidy, after Bola Ahmed Tinubu made this known during his inauguration speech on Monday, May 29th. He said that the controversial fuel subsidy was not budgeted for by the Buhari administration and as such it will be removed.
However, checks by Nairametrics reveal queues appeared in several parts of Lagos shortly after the speech as they expected an increase in fuel prices.
Petrol sells at N600 per litre
Nigerians took their frustration online on Tuesday morning, bemoaning the price hikes, and trading blames on the regulators and retailers. Many also complained about increased fares for ride-hailing services with surges of over 100%.
Just a few hours after President Tinubu’s statement, a video emerged of pump prices in Lagos selling petrol at N600 per litre.
Few hours after announcement of removal of fuel subsidy by President Tinubu, a filling station sells fuel for N600 per litre. pic.twitter.com/ERd5v8C3DJ
— Dami’ Adenuga (@DAMIADENUGA) May 29, 2023
Meanwhile, this morning, other videos emerged of fuel queues at N700 per litre also in Lagos.
With one phrase, the new president welcomed us to a new dispensation.
We are queuing to buy fuel at 700 per litre. pic.twitter.com/dxeiDIM5u2— Eghosa (@TheEghosa) May 30, 2023
Olúwatósìn Olaseinde, founder and CEO of GetLadda and The Money Africa urged that “ Maybe Tinubu shouldn’t have announced on stage.
- “He should have put measures in place first. Our team is going to Covenant University today and they are in a queue to buy petrol at N600/litre” she added.
Popular Media Consultant, @Elkrosmediahub complained that “N600 per liter is actually outrageous considering the economic state the country is atm.”
Retailers Fault
Others took the blame to the “middle man”, urging that the sudden price hikes is not the president’s fault, but the fault of retailers taking advantage of the chaos.
- Dr Penking( @drpenking) urged that the fuel price hike is not Tinubu’s fault, adding “It is your fellow Nigerians taking advantage of the situation. The same fuel they are selling now N600/L, they bought it even before the presidential elections. Nigerians are not good people. Nigerians are not good people.”
Some Nigerians reported that fuel stations in their areas were not selling at all, which could be a way of avoiding trouble with regulatory agencies, as @malachyodo1 revealed:
- “Most filling stations have closed shop. Transportation cost this morning is increasing per second. People are lamenting.”
Finally, the transport costs for middle-class Nigerians were being felt immediately, as Lagosians revealed bolt surge costs have already been input.
https://twitter.com/gb3nga/status/1663475393251139586?s=20
Context and bottom line
Experts have called for more context and transparency with the President’s words over the scarcity, Nairametrics reported Taiwo Oyedele, Fiscal Policy Partner and Africa Tax Leader at PricewaterhouseCoopers (PwC) said that the Tinubu administration and relevant agencies need to provide context to the fuel subsidy removal declaration.
Speaking on Channels Television on Monday night, Oyedele said that during the presidential campaign season, President Tinubu was very clear on his stance as regards the fuel subsidy removal.
According to Oyedele, the president’s declaration was proof of the decision he had already made to remove the fuel subsidy. He said:
- “What needs to happen now is that the President, the Nigerian National Petroleum Company Limited (NNPCL), and the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) need to provide context to that declaration made by the president.”
