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Fuel crisis in the oil rich Nigeria dampen holiday festivities

in Africa & the Diaspora by

Before the holiday, cars crammed in long lines at petro stations in Abuja, Lagos and other major cities. The queues go for miles and have created more congestion in cities already overrun by vehicles.

An acute fuel shortage in Nigeria leaves citizens irate in the oil-rich country.

I know you are wondering, how one of the top producers of oil can experienced a fuel shortage? It seems as if Nigeria gives more than it receives.

Photo credit: Gab Pili

To keep up with growing costs of oil production, Nigeria exports 70 percent of its oil, causing a domestic shortage.

Petro Plummet

Since the price of gas plummeted, the West African country’s GDP, which heavily depends on petro, dives as well. As the Naira declines, so does the production of gas.

Nigeria subsidizes much of the production. However,  most companies owning refineries in Nigeria are foreign.

Another issue is instability. The resurgence of militant attacks on oil facilities in the Niger Delta caused a dramatic decline in production. According to the latest data from the Nigerian National Petroleum Corporation, domestic production fell by 19 percent in June.

The shortage created a surge in black market petro, as Nigerians want to travel for the Christmas holidays. Now, drivers are sleeping at queues hoping that they will fill up before the holiday.

 

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