Hunger protests in Niger amidst fuel price hike
Just a few days ago residents of Niger state, a neighbouring state to the Federal Capital Territory (FCT) Abuja protested the hyperinflation plaguing the country, which has drastically affected the standard of living for citizens.
This is coming when Nigerians are experiencing hard economic challenges with hike in transportation, power failure, insecurity, excessive forex exchange against the Naira coupled with stagnant salaries or take home for workers cutting across both the government and the private sectors.
The residents of Minna in Niger State had stormed some major roads in the state capital, protesting the high cost of living, lamenting that the development is sending many Nigerians to early graves. But Governor Mohammed Umar Bago in his immediate reaction, blamed the protest on those he said were out to hijack trucks conveying foodstuffs to Minna from Lagos State.
This came as the National Association of Nigerian Students, NANS, asked President Bola Tinubu to immediately address the high cost of living in the country, saying many Nigerians are finding it difficult to survive.
The ever-busy Minna-Bida highway was blocked, halting vehicular movements as both commercial and private vehicles could neither come in from Bida nor move out of Minna, the state capital while the protest was on.
Also, vehicles coming from the Suleija-Abuja end were also trapped and could not enter the town freely for several hours.
The Kpakungu Roundabout which is central to most commercial vehicles to take off to different directions of the country especially to the southern part of the country, was completely blocked as passengers from other parts of the country were also trapped.
Consequently, traders and civil servants resident in the Kpakungu area had difficulties accessing their destinations and offices.
Motorists and tricycle operators who tried to manoeuvre the protesters were rough-handled and their vehicles and tricycles damaged.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun attributed that the rising prices of food and commodities in the country had become increasingly worrisome for the federal government.
Edun said the situation, which had produced growing discontent among the citizenry, was triggered by demand and supply forces.
The Minister spoke in Abuja during a bilateral meeting with a visiting German delegation, led by that country’s Minister of Economic Cooperation and Development (BMZ), Ms Svenja Shulze.
Edun’s comments came as protests rocked Niger State on Monday, as some youths and women resented what they perceived as mass purchase of food items for hoarding and export outside the country. The state government blamed food speculators for the protests.
The police said it used “minimum force” to disperse protesters, who blocked the Minna-Bida Road, and arrested some, whose activities were obstructing vehicular and human movement.
Fuel price in Nigeria today varies according to region. For example, fuel price per litre in Lagos today is different from fuel price in Abuja and Port Harcourt. NNPC fuel price in Nigeria is always lower than other fuel refilling stations in Nigeria.
The pump price of fuel today is at the highest since the history of Nigeria. The price of fuel in Nigeria will only go down when the oil rich country stops importing fuel and starts producing their own fuel by building good refineries with good working capacity. If you follow strictly the list of fuel prices in Nigeria since 1960, you’ll understand how the price of fuel skyrocketed from 2015 to 2024.
Today, the price of fuel in Nigeria is approximately 650 to N700 NGN per litre. This is due to various factors including inflation, exchange rate fluctuations, and changes in global oil prices.
The current fuel price increase in Nigeria can be attributed to the deregulation of the petroleum industry. The Nigerian government, in an attempt to reduce its expenditure, removed fuel subsidies, leading to an immediate increase in fuel prices.
The cost of crude oil on the international market also plays a significant role in determining fuel prices in Nigeria. When global crude oil prices rise, the cost of refining and importing fuel into Nigeria also increases, leading to higher pump prices.
Also the fluctuation in foreign exchange rates contributed to fuel increase in Nigeria. Since Nigeria imports most of its fuel, a weaker Naira against the US dollar makes imported fuel more expensive.
Infrastructure challenges, such as inadequate refineries and poor transport networks, also contribute to the high cost of fuel. These inefficiencies lead to increased operational costs, which are passed on to consumers in the form of higher fuel prices.
The geopolitical situation can influence fuel prices. Unrest in oil-producing regions can disrupt supply chains, causing prices to spike. Similarly, changes in international trade policies or sanctions can also affect the cost of importing fuel.
As of today February 6, 2024, the price of fuel in Abuja, Nigeria, is approximately 635 to 700 Naira per litre. This price is subject to change by the Nigerian government.
The exchange rate of the Nigerian Naira against the US Dollar is another factor that influences the price of fuel. If the Naira depreciates against the Dollar, the cost of importing fuel (which is priced in Dollars) increases, leading to a rise in domestic fuel.
The NNPC, in collaboration with the government, sets the official fuel price. As of the time of writing, the official pump price of petrol (PMS) is around 488 to 545 Naira per litre. However, this price is subject to change due to various factors such as changes in global crude oil prices, exchange rate fluctuations, and local demand and supply conditions.
The exchange rate of the Naira can affect fuel prices. If the Naira depreciates against the US dollar, the cost of importing fuel can increase, leading to higher prices at the pump. Therefore, economic stability and strong foreign exchange reserves are important for maintaining affordable fuel prices.
The President Tinubu administration must stand up to address the hunger in the land causing insecurity, unwanted involvement in corruption, among other vices in the society because when things eventually get out of hand it will be difficult to control by the security apparatus in the country.
