Despite his campaign promise to reduce petrol prices, President Bola Tinubu has overseen a staggering increase of approximately 488 percent—from N175 in May 2023 to N1,030 in October 2024—placing further strain on already impoverished Nigerians, reports Dare Olawin for Punch Newspaper.
Upon assuming office on May 29, 2023, President Tinubu’s first act was to eliminate the petrol subsidy. Almost immediately after taking the oath of office, he declared, “The fuel subsidy is gone.” This abrupt announcement precipitated a sharp decline in the country’s economic landscape, with filling stations, including those operated by the Nigerian National Petroleum Company Limited (NNPC), raising petrol prices above N500 per litre. Many Nigerians, who had initially hoped for positive change under the new administration, began to feel disillusioned, despite Tinubu’s assurances that there would be “gain after pain.”
Notably, Tinubu’s decision to increase fuel prices contradicted his earlier commitment made during a campaign rally in Abeokuta, where he vowed to lower petrol prices. Addressing supporters in Yoruba, he stated, “They said there would be a fuel price hike; that it will rise to N200, to N500. Put your mind at rest; we will bring it down.” This promise had sparked jubilation among the crowd, who viewed him as a potential savior. However, the reality has been starkly different since he took office.
For the average Nigerian, petrol is more than just a commodity; it is a lifeline. With over 85 million people lacking access to electricity, fuel has become a critical resource for both personal and commercial use. The rising cost of petrol has led to increased transportation expenses, driving up the prices of goods in the markets and exacerbating the struggles of everyday citizens.
The situation worsened approximately two weeks after Tinubu’s inauguration when he allowed the naira to float freely. In June, the Central Bank of Nigeria directed banks to remove the cap on the naira at the Investors and Exporters Window, resulting in a dramatic depreciation from around N400 to over N700 per dollar by mid-June. As of now, the naira has plummeted further, trading at over N1,600 to the dollar, inevitably pushing petrol prices higher, as fuel is priced in dollars.
Following the naira’s devaluation, the cost of petrol surged again. The NNPC initially introduced a subsidy payment mechanism to mitigate the impact, selling petrol at around N600 per litre despite the actual landing cost being approximately N1,200. However, the NNPC recently admitted to selling below cost, with its Chief Financial Officer, Umar Ajiya, clarifying that the company had not paid any subsidies to marketers in years.
In September, as fuel queues re-emerged at filling stations, NNPC acknowledged its significant debts to petrol suppliers, which it had previously denied. Following this admission, the company raised petrol prices from N600 to N855 per litre, with further increases expected as it began sourcing products from the newly opened Dangote refinery.
Public dissent has been palpable since Tinubu’s government took office, with labor unions and youth groups staging protests against the economic hardships they face. The Nigeria Labour Congress (NLC) and the Organised Private Sector have called for an immediate reversal of the petrol price hike, criticizing the government for prioritizing fuel price increases over the welfare of its citizens.
Experts have pointed to the naira’s devaluation as a primary factor behind soaring petrol prices, suggesting that the government should have staggered these policies more effectively. In light of the crisis, stakeholders have urged the government to consider alternative energy sources and support local refineries to alleviate the burden on Nigerians.
President Tinubu’s administration has failed to fulfill its promise of reducing petrol prices, instead implementing a series of drastic hikes that have thrust Nigerians deeper into economic hardship. With petrol prices soaring by 488 percent in just over a year and the naira losing substantial value, the ramifications are severe: increased transportation costs, rising market prices, and diminished access to electricity.
As Nigerians continue to grapple with these challenges, it is imperative for the government to acknowledge its responsibility, engage with stakeholders, and take decisive action to rectify the situation. The nation is in urgent need of accountability and sustainable solutions to alleviate the ongoing crisis.
Source: Punch Newspaper
