By Sizo Nkala
Nigeria is a country beset by multiple crises ranging from insecurity and political instability to electricity and fuel shortages. The country is currently going through the latest round of acute fuel shortages which have pushed the price of the precious commodity beyond the reach of many who are struggling just to survive. Fuel shortages have crippled the Nigerian economy since July.
At the beginning of this month, the Nigerian National Petroleum Corporation (NNPC), which is responsible for importing and distributing petroleum, announced a petrol price hike from 617 naira to 897 naira per litre.
There was a corresponding increase in the prices of private retailers of up to 1200 naira following the move by the NNPC. The NNPC attributed the fuel shortage to the debt it owes petroleum suppliers which is reportedly around the region of US$6.8 billion. Despite being one of Africas largest producers of crude oil, Nigeria imports almost all of its refined fuel needs.
The companys debt struggles could be due to President Bola Tinubus administrations decision to remove fuel subsidies which had kept the fuel prices low for decades after sustained pressure from the International Monetary Fund (IMF).
