Category: West Africa

Nigerians queue to buy fuel at Mobil filling station in Abuja. Photographer: Stringer/Anadolu Agency/Getty Images Crippling fuel shortages, power cuts, slowing economic growth and Islamist militants wreaking havoc. Muhammadu Buhari is taking on a tough job when he’s sworn in as Nigeria’s president on Friday. Former military ruler Buhari, 72, swept incumbent Goodluck Jonathan from office in March elections by pledging to end endemic corruption and Boko Haram’s rebellion in the north. His stewardship of Africa’s biggest oil producer, this time as elected president, may depend on the price of crude, which supplies the government with more than two-thirds of its income. “If you look at expectation and look at funding, there’s quite a gap,” Olusegun Sotola, a research fellow at the Lagos-based Initiative for Public Policy Analysis, said by phone. “Buhari is going to be running a government without the necessary funding, which is a big problem because […]

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Lagos — As the world awaits the inauguration of Muhammadu Buhari as the President of Nigeria, controversy over the contentious fuel subsidy claims has taken a centre stage following the fuel scarcity that almost brought the country to its knees. This is coming as the Federal Government is said to have spent more than N6 trillion from 2006 to 2014 on fuel subsidies. Vanguard can now reveal the amount spent on subsidy since 2006. The table below shows the amount spent on subsidy from 2006: *2006 – N151.9 billion; *2007- N188 billion; *2008 – N256.3billion (January to July); *2009 – N421.5billion; *2010 – N673 billion; *2011 – (N1.3 trillion)revised to N2.19 trillion; *2012 – N888 billion + N161.6 billion supplementary *2013 – N971 billion; and, *2014 – N971.1 billion Although figures are now being bandied about by respective groups, but former President Olusegun Obasanjo reintroduced subsidy on fuel as […]

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The Associated Press By MICHELLE FAUL, Associated Press LAGOS, Nigeria (AP) — Nigeria’s outgoing government has agreed to pay a debt of $800 million to resolve a months-long fuel crisis crippling the economy days before the inauguration of a new president in the country, oil suppliers said Wednesday. Chaos reigned Tuesday at Nigerian airports where most flights were cancelled. Foreign airlines flew to other African countries to refuel. Cars and other vehicles formed queues two and three deep blocking roads for more than 2 kilometers (a mile) outside of gas stations. Attendants turned away people carrying yellow cans to buy kerosene for cooking. There was none. Banks started closing at lunchtime on Monday and cell phone companies warned they would be forced to shut down service countrywide for lack of diesel to fuel generators. Nigeria — Africa’s biggest oil producer— generates more than 2 million barrels of petroleum a […]

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This is extraordinary. Remember all those dire things that were supposed to happen when Peak Oil hit? All the stuff in The Long Emrgency? Cars queuing up for miles to buy petrol, public transportation jacking up rates, cell phones not working, banks closing their doors, planes grounded for lack of fuel, supermarkets stripped bare, scalpers selling gas in jerry-cans, factories shutting down, stations going off the air, people losing their jobs, political disorder, human sacrifice, dogs and cats living together, mass hysteria… Turns out all of it is happening…In Nigeria: Nigeria is facing a prolonged fuel-supply crisis that is taking a severe toll on the country’s economy, living conditions, and basic services, reports say. The shortage in Africa’s leading oil producer has forced an increasing number of drivers in Lagos to stop using their personal vehicles, but prices for commuters on public transport have more than doubled. Black market […]

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Hawkers sell gasoline in Abuja, Nigeria, on Monday. The country has been experiencing a severe scarcity of fuel. (Deji Yake / European Pressphoto Agency) Nigeria’s gasoline scarcity was resolved Monday, but only after the shortages had damaged the economy, canceled or diverted commercial flights, shut down radio stations and put mobile phone networks at risk. With incoming President Muhammadu Buhari set to be sworn in Friday, the opposition All Progressives Congress accused outgoing President Goodluck Jonathan of sabotaging the new administration. Buhari faces high expectations and myriad problems, including a government financial crisis partly caused by the fall in oil prices, a battle against the militant group Boko Haram in the country’s northeast, electricity outages, widespread corruption and poor infrastructure. In the final days of Jonathan’s term, the country has also faced dire gasoline shortages and millions in unpaid wages of government workers. The gasoline shortage began before the March election that […]

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Nigerian oil worker unions at state-owned Nigerian National Petroleum Corporation and Nigerian Petroleum Development Company have called off a strike that shut about 100,000 b/d of production for a week, union and company officials said late Monday. The Pengassan and Nupeng unions started the strike May 18 to protest the transfer by the government of the operatorship of onshore oil block OML 42, sold by Shell to local firm Neconde. "Since the strike has been called off, other necessary things will follow," a NPDC spokesman said, referring to the restart of oil production at shut fields, without giving further details. Article continues below… For over 100 years Platts has been at the forefront of pricing and news in the energy markets. Today, we publish the essential information that you need to navigate the rapidly evolving commodity markets that Africa plays a key part in. Here you will find a […]

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Nigeria’s energy crisis deteriorated Monday, as the Nigerian Electricity Regulatory Commission (NERC), the government agency responsible for regulating operations in the electricity sector, reported that only five of the country’ 23 power plants are currently functional. By implication, Nigerians would now have to contend with a biting fuel supply crisis, which has almost grounded the economy for months, and lack of electricity to power. On Friday, the Permanent Secretary, Federal Ministry of Power, Godknows Igali, had during a meeting with outgoing Vice-President, Namadi Sambo, in Abuja raised the alarm over the epileptic supply of electricity across the country. Mr. Igali, in the company of the Minister of Power, Chinedu Nebo, said the country’s dwindling electricity supply took a further nosedive to unprecedented all-time low level of 1,327 megawatts (MW) from the 4,800 MW level attained recently. He attributed the damning situation to the epileptic performance of most key power […]

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By Abel Orukpe, Tunde Opeseitan, Emma Nzomiwu, Chukwujekwu Ilozue And Temidayo Akinsuyi The lingering fuel crises caused by the refusal of oil marketers to lift and supply petroleum products until their demand for payment of oil subsidy is met by the federal government, appear to have affected virtually every sector of the Nigerian economy. Judicial activities at the various courts in Lagos were halted as those who managed to sit adjourned abruptly. In Enugu State, all the roads were deserted as the exorbitant cost of petrol forced motorists who could not afford to pay N200 per litre to either abandon their vehicles and trek or use commercial means of transportation. Also in Anambra State, business and social activities were almost shut down due to the crises. The price of petrol as at yesterday is said to have risen to between N180 to N250 per litre. Unfortunately, Mega stations from […]

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By Drew Hinshaw And Patrick McGroarty LAGOS, Nigeria–The most oil-rich nation in Africa nearly ran out of gas this week. Airlines grounded flights because they couldn’t find jet fuel in recent days, and gas stations nearly all closed down. The companies licensed to restock Nigeria’s fuel depots refused to do so, saying the government here–defeated in an election in March–owed them more than $1 billion. The result was the worst fuel shortage here since a 1993 military coup, one that could echo for weeks in Africa’s top economy. Television stations, banks, and cellphone towers all went offline. Doctors worried their emergency rooms would go dark, and several soldiers in the north said they considered halting their pursuit of Boko Haram and the women the Islamist terrorist group has kidnapped. Late Monday, the shortage ended, when Nigeria’s government agreed to look into the debts it owed. On Tuesday, gas stations […]

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