Arab Today, arab today fuel queues back with a vengeance stalling nigerian economy
Last Updated : GMT 16:49:39
Arab Today, arab today
Arab Today, arab today

Fuel queues back with a vengeance stalling Nigerian economy

Arab Today, arab today

Arab Today, arab today Fuel queues back with a vengeance stalling Nigerian economy

A man stands with his foot on top of a jerrican waiting to buy fuel in Lagos
Lagos - Arab Today

Nigeria's financial capital Lagos is running on fumes again.

A fuel scarcity reached a climax this week with cars in lengthy queues clogging traffic, stoking tempers and dampening investor confidence in a top oil producing country.

Things got violent. Local newspapers reported paramilitary officers shooting dead gas sellers on the black market, as the Lagos state governor announced a ban on "indiscriminate queues", a Kafkaesque attempt to get traffic flowing.

Hoping to beat the crowds, some spent the night in their vehicles waiting in the queue outside a filling station. "I slept in the car, in the back seat. I need fuel," Kenny Giwa, a 26-year-old taxi driver, told AFP.

Giwa's determination paid off. Just after dawn on Wednesday, his battered blue Volkswagen Golf was first at the gate of a station selling petrol for 86.50 naira (43 US cents, 38 euro cents) per litre.

But his victory will be short-lived. "If I buy today it will last two days, then I'll queue again," Giwa said with a sigh, "The price of the black market fuel is too much."

Nearby, black market fuel hawkers stand holding pieces of hose and yellow jerry cans waiting for richer -- or more desperate -- drivers willing to fork over twice the amount of cash per litre to avoid the mind-numbing wait.

"We're the largest oil producing country in Africa, this is poor management, greed and corruption," said Muyiwa Oke, a pharmaceutical researcher buying black market gas for 250 naira per litre.

"The traffic is crazy. At half a tank I start looking. I don't want to get stuck."

- 'Genuine financial distress' -
Nigeria is no stranger to fuel scarcity. Despite its massive oil wealth, years of mismanagement have left state-owned refineries working at a fraction of their 445,000 barrels per day capacity, according to Bloomberg News.

Yet this latest round is particularly bad, a situation analysts attribute to the crash in global oil prices and President Muhammadu Buhari's stubborn insistence on pegging the naira at 197 to 199 to the dollar through capital controls and import restrictions.

"The downstream marketers are probably in genuine financial distress right now," Alan Cameron, a London-based economist at frontier markets firm Exotix, said.

With dollars in short supply, fuel importers are forced to go to the black market, where the naira is hovering around 220 per dollar. In the end, the importers end up paying the difference without any compensation.

In response to the fuel crisis, Nigeria's Petroleum Minister of State Emmanuel Kachikwu wrangled a deal with international energy companies working in the country to provide about $200 million to help fund fuel imports.

"This is probably the most challenging issue since I took over," Kachikwu said in a speech posted on his Facebook page Thursday, promising "by the second week of April we should be out of the queue situation."

Still, he admitted, the $200 million "buffer" is not a long term solution.

- 'Crucial turning point' -
When Buhari was elected president last year, investors were bullish on Nigeria, emboldened by a peaceful transfer of power and the country's strong GDP growth.

But now the low price of oil and Buhari's unorthodox monetary policy has changed the outlook dramatically.

Oil accounts for two-thirds of Nigeria's revenue and the low prices are putting pressure on the government. Meanwhile, propping up the currency is draining foreign exchange reserves.

The fuel queues are just one symptom of the failing economy.

"Nigeria is at a crucial turning point," Anna Rosenberg, director of sub-Saharan Africa research at Frontier Strategy Group, said.

"It could muddle through this year with relatively low growth, but only if the government adjusts monetary policy and lets the naira devalue," she said.

"The longer they refuse to do that, the worse it's going to look."

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fuel queues back with a vengeance stalling nigerian economy Arab Today, arab today fuel queues back with a vengeance stalling nigerian economy

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fuel queues back with a vengeance stalling nigerian economy Arab Today, arab today fuel queues back with a vengeance stalling nigerian economy

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday