Despite Nigeria’s wealth in crude oil and other mineral resources, petrol scarcity has been a persistent issue since the 1970s, with fuel shortages occurring almost every year. Nigeria’s petrol crisis continues to cause significant disruptions to the nation’s economy and daily life.
- Petrol scarcity in Nigeria has been a persistent issue since the 1970s, not just a recent phenomenon. The problem has evolved over decades, affecting various aspects of the economy and daily life.
- In the history of the increase in the price of fuel in Nigeria, President Tinubu’s tenure is the highest, with over 300% increase between 2023 and 2024.
- The Naira-Dollar exchange rate has a strong correlation with the landing cost of fuel.
- Most of fuel scarcity in Nigeria is caused by hoarding of fuel by depots, marketers and filling stations.
- NNPC’s subsidy scam is a major factor to fuel scarcity and increase in the price of petrol. This has not been curbed by the government till date.
Nigeria’s petrol crisis and rising fuel prices, if not stabilised, will continue to impact the nation’s economy and obstruct growth.
To resolve Nigeria’s petrol crisis, several steps can be taken. First, we must boost local refining capacity to reduce dependence on imports to stabilise supply and control prices. Secondly, improving transparency in the petroleum distribution chain can help curb corruption and ensure fair pricing. Additionally, diversifying energy sources, such as exploring alternative fuels and renewable energy, would reduce pressure on petrol demand.
The federal government policy reforms aimed at deregulating the downstream sector and encouraging private sector investment would foster competition, leading to more sustainable solutions for the fuel market.
