Significant Increase in Petrol Prices: The Nigerian National Petroleum Company (NNPC) Limited has raised the pump price of petrol by almost 200%, with prices ranging from N488 to N557 per litre nationwide. This adjustment follows President Bola Tinubu’s announcement that fuel subsidy is no longer in place, and the expected savings will be redirected towards sectors like education and health.
Displeasure and Criticism: The Nigeria Labour Congress (NLC) expressed its dissatisfaction with the NNPC’s pricing template, considering it vexatious and expressing concern that the government proceeded with the new price regime despite ongoing meetings to manage the unilateral decision to end fuel subsidy. The Human Rights Writers Association (HURIWA) condemned the price hike as wicked and obnoxious, calling on Nigerians to peacefully demonstrate against the government’s actions. The Nigerian Employers’ Consultative Association (NECA) urged the government to approach subsidy removal strategically to avoid worsening socioeconomic indicators.
Financial Burden on NNPC: NNPC revealed that it has been funding subsidies amounting to N400 billion monthly and that the federal government owes the company N2.8 trillion in petrol subsidy payments. The lack of payment from the federation has strained NNPC’s cash flow and affected its operations.
The Nigerian government’s decision to adjust petrol prices by nearly 200% has sparked displeasure and chaos. The NLC, HURIWA, and NECA have criticized the move, expressing concerns about the impact on the Nigerian people and urging the government to reconsider its actions. NNPC, burdened by funding subsidies and unpaid debts, implemented the price hike to reflect market dynamics. The situation has led to fuel hoarding, exorbitant prices, and nationwide challenges for commuters.