Fuel Crisis Ruins Nigeria’s Economy

Fuel Crisis Ruins Nigeria’s Economy

Banks stop operating, flights are cancelled, radio stations stop broadcasting and public services curtailing. Many businesses in Nigeria are heavily dependent on power generators and can’t supply diesel fuel.

Fuel Crisis Ruins Nigeria’s Economy
Fuel scarcity hits Nigeria's economy hard.

Guarantee Trust Bank is closing its branches amidst fuel scarcity which causes huge overall negative impact on Nigerian economy. Just as many other businesses in Nigeria it is heavily dependent on power generators and can’t supply diesel fuel for them no further. Nigeria’s economy literally comes to a standstill cause of fuel scarcity.

Following a statement by MTN that it is going to shut down within 24 hours, other major companies in their turn released statements that they’re also heavily affected by fuel scarcity. Flights are cancelled; radio stations stop broadcasting and public services curtailing. Guarantee Trust Bank informed clients that it is not able to supply its branches with diesel fuel needed to power generators.

  Muhammadu Buhari’s party accuses outgoing government of fuel scarcity in Nigeria, calling it no less than “sabotage”.  

Despite being Africa’s largest economy, Nigeria is slowly coming to a standstill due to fuel crisis.

 

The scarcity comes as the result of dispute between government and fuel marketers and transporters over unpaid bills of $1 billion. Since October 2014 they were unpaid the difference between real cost of products and fuel price subsidised by outgoing Goodluck Jonathan’s government. 

Recently Tonye Cole, the chief executive of energy company Sahara Group, explained three main reasons why fuel scarcity is unlikely to end soon.

The main three reasons for that are change of government, prospects for removal fuel subsidies and weakening naira. According to Mr. Cole, the combination of these factors will affect ordinary Nigerians in the nearest future.

At the same time, The Major Oil Marketers Association of Nigeria (MOMAN) disclosed that the scarcity of fuel currently being experienced in major cities across the country will persist except federal government acts fast to pay outstanding subsidy claims.

Meanwhile, the Minister of Finance, Ngozi Okonjo-Iweala told journalists that the government agreed that N30 billion be released immediately for the payment of the differentials in exchange rate used by market for fuel importation.

Source: Legit.ng

Authors:
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Khadijah Thabit (Copyeditor) Khadijah Thabit is an editor with over 3 years of experience editing and managing contents such as articles, blogs, newsletters and social leads. She has a BA in English and Literary Studies from the University of Ibadan, Nigeria. Khadijah joined Legit.ng in September 2020 as a copyeditor and proofreader for the Human Interest, Current Affairs, Business, Sports and PR desks. As a grammar police, she develops her skills by reading novels and dictionaries. Email: khadeeejathabit@gmail.com

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