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Long queues near petrol pumps are a common sight in Nigeria, despite being the largest oil-producing country in Africa and a member of OPEC
Long queues near petrol pumps are a common sight in Nigeria, despite being the largest oil-producing country in Africa and a member of OPEC. Nigerians spend eight hours queuing for fuel considerably cutting short their working hours. The Russia-Ukraine conflict is another flash point affecting the ailing economy, scaling up the import cost of fuel by almost 100 percent.
The government has capped the petrol prices at about 0.4 US dollars per liter. However, the retailers complain that they incur a loss while selling at the government-fixed price. In May, Nigeria produced an average of 1.42 million barrels per day, according to the OPEC. However, Nigeria imports almost all of its fuel since its four refineries fail to cover the population’s needs. This is due to a lack of refining capacity in the country. Though some of the refineries including the one being built by the Dangote group are at different stages of completion, there are undue delays in commissioning them.
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Since the Russian -Ukraine war, Nigeria has emerged as Europe’s first liquified natural gas supplier. Europe has looked for ways to strengthen the partnership. Nigeria is working out plans for leveraging its energy resources for building strong investment partnerships with the West including the US and EU.
