Right now in Nigeria, the debate over the increase in the price of petrol is generating strong reactions. This decision taken by the Nigeria National Petroleum Company Limited (NNPC Ltd.) and the distributors has a significant impact on the country’s economy and the population.
Dahiru Garba, an economic expert, points out that this increase in the price of petrol from ₦897 to ₦1,030 per litre is likely to push more Nigerians into poverty. According to him, this sharp increase is not just an adjustment in fuel prices but will have significant consequences on the private sector, trade and the already precarious population.
The effects will be felt immediately with an increase in transport costs, leading to higher food prices, difficulties for businesses, even closures and inflationary pressure. In the long run, small and medium enterprises as well as the agricultural sector will also be impacted.
To mitigate these repercussions, government measures are needed. Targeted incentives to promote energy efficiency, reduce wasteful expenditure and lower the cost of governance are imperative. Without these interventions, Nigeria risks enduring economic and social hardship, leading to an increase in the number of people living in poverty.
The stories from the population are poignant. Mary Chatta, a retired widow, expresses her concern over the ever-increasing cost of living. With her children unemployed, she is left to support them on an inadequate pension. For her, it is crucial that the government takes measures to ease the financial burden on the most vulnerable households.
Oyiza Malik, a frozen food trader, shares her struggles to balance her budget due to the increase in fuel prices. She struggles to meet her family’s basic needs while coping with ever-increasing transportation costs. The situation is becoming critical for low-income households who are already struggling to make ends meet.
Emeka Uzor, a taxi driver, laments the loss of his meager savings due to the increase in fuel prices. This situation is compromising his professional activity and forcing him to consider a reconversion. Passengers complain about the high prices, but for drivers, buying fuel at ₦1,250 per liter leaves little room for maneuver.
In short, the increase in the price of gasoline in Nigeria impacts the country’s economy and the daily lives of Nigerians. It is imperative that measures are taken to mitigate the effects on the most vulnerable and ensure a sustainable and equitable energy transition.