Nigeria petrol queues linger

Fuel scarcity has hit Nigeria hard as longer queues snake outside petrol stations following President's declaration that petrol subsidies have been removed. The Group CEO of the Nigerian National Petroleum Company (NNPC), Mele Kyari, revealed yesterday that the government owes the firm a staggering 2.8 trillion naira spent on petrol subsidies. In a CNBC Africa interview, Muda Yusuf, Director at the Centre for the Promotion of Private Enterprise, shared insights on the unfolding crisis. Yusuf expressed his surprise at the abrupt subsidy removal, causing significant economic disruptions and leading to the current fuel crisis. The immediate challenge, he observed, is to manage the crisis and gradually restore market equilibrium. Yusuf highlighted the need for effective crisis management in the wake of the subsidy removal. He emphasized the importance of addressing immediate challenges, such as potential inflationary impacts and the rising cost of living for ordinary citizens. Discussing the NLC's role in negotiations, Yusuf suggested that the government should prioritize policies to mitigate inflation and cushion the impact on the most vulnerable sectors. The removal of petrol subsidies and the ensuing fuel scarcity have intensified the economic challenges facing Nigeria. Yusuf predicted short-lived inflationary pressures, attributing the current shortages to a lack of supply response. He expressed confidence that once supply increases, queues will diminish. Yusuf urged prompt actions to ensure adequate supply and alleviate the current scarcity. In the interview, Yusuf also discussed the importance of engaging stakeholders across the petroleum supply chain. He underscored the need to scale up supply, diversify importers, and enhance access to foreign exchange for oil companies. Addressing monopolistic supply structures and reforming the foreign exchange market were identified as crucial steps in stabilizing the petroleum sector. The dire situation in Nigeria's petroleum sector has led to frustration among consumers facing long queues and increased transport costs. Despite the challenges, Yusuf remains hopeful that effective stakeholder engagement and policy reforms can help address the crisis and pave the way for a more stable market environment. As Nigeria navigates through these turbulent times, collaboration and decisive actions will be key to finding sustainable solutions to the ongoing challenges.