FUELling Crisis

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Vincent Kuraun, Biola Azeez, Udeme Utip, Johnson Babajide, Ebenezer Adurokiya, Ishola Michael write on how Nigerians are reacting to the hike in the price of petrol as the result of removal of subsidy on the product by President Bola Ahmed Tinubu’s administration.

President Bola Ahmed Tinubu has already hit the ground running. The president, in his inaugural speech made it very clear that the outgoing administration did not make provision for petrol subsidy in the budget and saying: “Fuel subsidy is gone. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources.”

Against this pronouncement, the Nigerian National Petroleum Corporation (NNPC) Limited released a new petrol pricing template across the nation which has since taken effect since 31 May. While some people applauded the president for taking a bold step few minutes after taking oath of the office, many others have since been condemning the decision which they claimed will worsen the situation of Nigerians many of who had already lost their means of livelihood during the immediate past administration of Muhamamdu Buhari. Some opinion leaders even blamed the timing, which they believed was not right, as the Federal Government has not made any provision that will cushion the adverse effect of subsidy removal as well as fixing existing refineries despite eight years of the APC administration.

But with petrol now selling at N500 or more nationwide, its un-salutary effects have also started manifesting particularly in the areas of transportation and food prices.

Speaking with Sunday Tribune, some cattle dealers in Bauchi expressed apprehension that the prices cattle and other may rise as a result of increase in price of fuel. According to them, the high price of fuel is already having adverse effects on sales of animals, particularly as Eid-El Kabir, the grand Muslim festival, during which animals are sacrificed, is around the corner.

At the various cattle markets in Bauchi, the story is the same; prices of animals are expected to increase due to the increase in the cost of transportation.

Sadiq Ibrahim Ahmed, chairman, Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN) and chairman joint Forum of Fulani Associations in Bauchi State while speaking with Sunday Tribune bemoan the situation saying that it will negatively impact on the people.

“Just as it happened during the short period of confusion when the Naira swap was introduced, same thing is happening now. Nigerians have been plunged into confusion and it is affecting every facet of life.

“Prices must definitely go up because the cost of transportation of the animals has gone up which will affect what our people will sell the animals.”

On the Eid-El Kabir, he said: “We have no choice but to sell the animals at higher prices. The buyers must be ready to buy at such prices. Definitely, it will affect the Eid-El-Kabir celebration this year. Government should please, act now to reduce the negative effect of the subsidy removal.”

Also speaking, Malam Umar MaiRago, chairman, Association of Ram Sellers, Wunti Market, said that the cost of transportation to the rural markets where they normally buy the animals has tripled which will result in increase in the prices. Ram that was sold at N50,000 last year will go for between N80,000 and N100,000 this year.

Ahmadu Bagobiri, leader of the cattle dealers at the Railway cattle market said that with the development, buyers of cows for Eid-El-Kabir must be ready to contend with exorbitant prices this year.

According to him, “a cow that was sold for N150, 000 last year will go for between N250,000 and N300,000 because of the cost of transportation from the rural markets. Even now, the cost of feeding the animals has risen forcing them to seek alternative ways of feeding the animals.”

Aminu Tukur, one of the leaders of Fulani in Bauchi State said: “The complete removal of fuel subsidy on all petroleum products, especially fuel, has an adverse effect of everything that requires mobility in form of transportation. It is therefore a general problem to everyone.”

“The nomadic community to which I am to make comments about the adversity of the subsidy removal is being affected in the following area. Transportation cost to the market places has been doubled with the withdrawal of subsidy.

“Hence transport of persons and animals is being affected and must influence stock pricing. Cross implication effects in services delivery to the nomadic community in essential commodity, health care services for both human and stock must have increased to correspond with reality of the moment.

“There is every possibility of stagnation before adjustment in business transaction between the herders and the buyers with the increase in transportation cost. To sum it up, the subsidy removal will certainly have a general effect but will stabilise within a shortest time possible to forge ahead.”

Prices of goods may get out of control

Also reacting to this development, traders in Warri market in Delta State fear that things may get out of control. According to them, prices of goods may shoot up beyond the reach of the ordinary man in the next few days, if the federal government does not swiftly cushion the effects of the fuel subsidy removal.

Speaking with Sunday Tribune, Mr Godwin Eneghan, chairman of Ogbe-Ijoh Market Committee and an employee with the Warri South Local Government Area of the state, said though the fuel subsidy removal was inevitably necessary, but the present administration needs to fix the refineries as a matter of urgency.

Eneghan while lamenting that traders are already encumbered with the effects of the subsidy removal at the Ogbe-Ijoh Market said the market is now a shadow of itself as transport fare has gone up beyond reach.

“The fuel subsidy removal is affecting us, not just the traders but all of us at the market. This is a market that is always busy but presently you can see how scanty the market is.

“Some of them live in Agbarho, Udu road, Jeddo, among others. Since the transport fare has gone up, how would you then expect them to come to their places of business? Those of them having vehicles have to abandon their vehicles at home. Transport fare for every bus stop is now between N150 and N200.

“But I will plead with the federal government to fix our refineries. If the refineries are working and are in good condition, with the promises of the establishment of modular refineries and that of Dangote that is about to kick-start, there would be respite.

“The fuel subsidy removal is a good move, but the federal government must quickly respond to mitigate the adverse effect we are all going through now.”

Bemoaning the instant inflation that accompanied the pronouncement by the president during, Comrade Eneghan, recalled that “immediately the announcement was made a paint bucket of garri went up to as high as N2,500.”

Businesses expressing crunch in Benue

In Makurdi the Benue State capital, queues have gradually disappeared as petrol stations are now fully open for motorists but with different prices ranging from N537 to N600 per liter and this had affected the activities and movement of people within and around the state.

Sunday Tribune observed during it visit to some motor parks that the sudden removal of fuel subsidy has taken toll on transport business.

According to a commercial driver Donald Ikyu, who plies Makurdi to Abuja at Yahama Park in Makurdi, the capital city said the removal of subsidy had affected their business as few people now travel.

According to him, “with the sudden removal of fuel subsidy, transport business is nearing collapse because the number of travelers has reduced drastically.

“Before now, more than twelve vehicles would have arrived Makurdi from Abuja and about four leaving this park to Abuja because it is weekend but as am talking to you now no vehicle has arrived from Abuja and the first vehicle is yet to fill up as at 12:30pm.

Also the Secretary of the state chapter of Nigeria Road Transport Workers, Stephen Akintola, while lamenting the effects of the subsidy removal said, people no longer travel as it used to be as a result of hike in fare.

“What people now do is to send their goods through way bill; they transfer money to their customer and send their goods through way bill.”

He also explained that there are always cases of adulterated fuel anytime there is increment in price of fuel.

A civil servant in the state, Orduen Joseph, described the removal of the subsidy as ‘satanic saying the removal of the subsidy had further compounded their plight because the immediate past government owes them salaries for 10 months.

Prices of goods yet to increase in Kwara but…

Socio-economic activities in Ilorin, Kwara State capital and other major towns in the state have been affected as well as the result of the subsidy removal. A noticeable effect of the development is the fewer number of both commercial and private vehicles plying the road, as many vehicle owners had dropped their vehicles to use commercial means of transportation because of the increase in prices of petroleum products.

Sunday Tribune findings in government ministries and agencies revealed a reduction in number of staff that came to work since the removal of fuel subsidy just as the new oil price template had caused increase in transport fare in the state.

It was also gathered that many of the workers had devised alternative measure to cope with the increase in transport fare as they chose to come in commercial transportation, rather than using their personal vehicles in order to save money.

Also many people now resort to trekking some distance in the state capital to reduce money that would be used on transportation however, commuters have had to contend with standing at bus stops for longer period as there were fewer vehicles and other means of transportation on the road.

Investigations also showed that prices of items were yet to be increased by traders with the new price of petrol.

Speaking with a pepper trader at Oja Tuntun, Ilorin in the Ilorin West Local Government Area of the state, Madam Aarinola Akanke, said that prices of items were already on the high side before now, adding that they were still buying at old price and no reason for them too to increase price.

She, however, said that transportation fares had increased; adding that effect of such on prices of items may be effected in days to come.

Meanwhile, queues were no longer visible at many filling stations, as new price template of between N515 and N520 had taken effect and this made the cost of transportation to go up in the state by at least 25 to 50 per cent for both intra and inter-state transit respectively.

Transport fares go up in Akwa Ibom

In Akwa Ibom State, the moment the president, completed his maiden speech, half of the fuel stations in the capital city, especially those belonging to independent marketers were shut down.

The same day before evening, witnessed abrupt increase in prices of fuel. The price went up as much as between N500 to N600. Findings by Sunday Tribune show that commuters are the worse hit in the precarious situation as transport fare had doubled from what it used to be.

A distance that was hitherto charged N100 is now charged N200 and N150 if well negotiated.

Fare outside the capital city has also hiked by over 50 per cent, as fare that was initially pegged at N1000 has jumped to N1500. Interstate travellers are also lamenting. Transportation from Uyo to Calabar, Cross River State capital, which was N2000 as of last week, is now N3000 because of the fuel subsidy removal.

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