All over the world, the opposition is known for its role in criticising the government of the day in the hope that citizens will vote it out in the next election. Nigeria is no exception to this political practice. The problem with the opposition in Nigeria is their duplicity and the inability to provide alternatives. They criticise the government for removing petrol subsidy when they promised to do the same thing in their campaigns.
They also criticise the implementation of the policy without suggesting better ways of going about it. What is worse, they mislead poor and illiterate masses through misinformation and lies. Even the educated but ignorant masses are deceived via social media trolls and lies. I have debunked some of these lies circulated on social media, especially WhatsApp, even by highly educated Nigerians. Unfortunately, the government has not done enough to fill the knowledge gap (see, for example, my piece, How we got here, The Nation, February 14, 2024).
There is no doubt that the removal of petrol subsidy and the floating of the Naira have led to widespread economic destabilasation and deepened the existing poverty level. Although the floating of the Naira has led to its devaluation, it is the removal of fuel subsidy that has attracted the most criticism for at least two major reasons: First, it led to repeated hikes in the prices of petroleum products, especially petrol and diesel used for fueling motor vehicles and generators. The ripple effects of the hikes are felt in increases in the cost of living from transport to food and housing. Second, state Governors have continued to seat on the funds allocated to the states to cushion the effects of the increases in petrol price.
Advertisement
To order your copy, send a WhatsApp message to +1 317 665 2180
Despite government effort to improve the economic situation by rolling out palliatives, wage increases, grains from the reserve, as well as funds for infrastructure development and agricultural expansion, the opposition and other critics of the government have continued to criticise the government for removing fuel subsidy.
Some have asked the government to reinstate fuel subsidy, while others have suggested that the government should arbitrarily bring down the price of petrol. Both groups are either ignorant or mischievous: Confront any state Governor about monthly allocations since the start of the Tinubu administration. The truthful ones will confirm that state allocations have doubled.
Similarly, google petrol prices across the globe and you will discover that the price of one litre of petrol in Nigeria, even at N900, is still below the average cost across Africa and the world at large.
The truth is that, apart from a few countries in Africa, mostly oil producing, such as Libya, Egypt, Algeria, and Angola, the average price of petrol in Africa is over one dollar, that is, over N1,650. For the rest of this essay, I use the dollar price, partly because, as a universal commodity, petrol is generally denominated in dollar and partly because the dollar price makes comparisons across countries much easier.
In West Africa, Nigeria, Cameroon, Ghana, and Chad produce oil in varying quantities, with Nigeria being the highest producer. While the dollar price of one litre of petrol in Nigeria is now between $0.55 and $0.60 (that is, between N900 and N1,000), the price in Cameroon is 1.37 (that is, over N2,000). The price is less in Ghana at 1.05 (that is still over N1,750.00).
However, the price in Chad is 0.84. This is closer to, but still higher than, Nigeria’s price. Other West African countries in which the litre price is less than one dollar, but still higher than Nigeria’s, are Liberia (0.80); Niger (0.97); and Gabon (0.98).
In all other West African countries, the litre price of petrol is higher than one dollar. Here is a sample: Benin (1.12); Togo (1.15); Guinea (1.39); Burkina Faso (1.42); Sierra Leone (1.50); and Senegal (1.65). Take a look at Senegal again: In that country, the price of one litre of petrol is approaching N3,000! And that is a country where the President was attempting to sit tight the other day. And the new President can do nothing about the price. In summary, even with the double hike, petrol price in Nigeria is still cheaper than in any other country in West Africa.
The situation in East Africa is worse than in West Africa as there is no single country in which the litre price of petrol is less than one dollar, partly because there is no oil producing country in the region. Here’s a sample: Tanzania (1.20); Uganda (1.36); Ethiopia (1.37); Rwanda (1.4); and Kenya (1.43).
It is a different story, however, in North Africa, where the only country that pays over one dollar for a litre of petrol is Morocco (1.53). It is close to a dollar in Tunisia (0.81), but much less in the oil producing countries of Libya (0.03) Algeria (0.3) and Egypt (0.4). Incidentally, these are oil producing countries in which crude oil is also locally refined.
However, local refinery did not save the day in oil producing South Africa, where the litre price of petrol is over one dollar at 1.21. But the story is different in Angola, another oil producing country in Southern Africa, where the litre price of petrol is only 0.36. In all other countries in the region, it is well over a dollar. For example, it is so in Malawi (1.50); Zambia (1.50); Zimbabwe (1.64); and Swaziland, which pays the highest price in Africa, at two dollars (that is, over N3,000) per litre.
On a global perspective, fuel prices are high around the world. The average price this month is about $1.40 per litre. While Iran and Libya compete for the lowest litre price or petrol in the world, Hong Kong claims the medal for the highest liter price for petrol at over three dollars. Variations in fuel prices are generally due to variations in taxation; amount of subsidy paid, if any; level of corruption; whether or not crude oil is indigenous; and whether or not oil is locally refined or imported.
Going by the above data, it is still good news for Nigeria that she is still among the countries with the lowest litre price of petrol in the world, despite the removal of fuel subsidy. It currently ranks among the top 15 countries in the world with the lowest litre price of petrol. True, it has taken a toll on the citizens, but the removal of fuel subsidy was good riddance, because it only benefited a few, while it lasted.
Let me repeat: Those who have been asking to see the savings from the removal of fuel subsidy should go ask their state Governors, who have been receiving more money as federal allocations since the removal of fuel subsidy.
The Nation
