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Nigeria: Why Are Fuel Pumps In Africa’s Oil Giant Running Dry?

Nigeria: Why Are Fuel Pumps In Africa’s Oil Giant Running Dry?

Nigeria is Africa’s largest oil producer, but a fuel shortage has paralyzed businesses in the west African country of 170 million people for months now. Not even a new government full of promises has been able to keep the gas pumps running.

It’s no wonder a local lawyer has sued President Muhammadu Buhari for breaching his oath of office by allegedly failing to address the lingering fuel crisis that started in March, even before he became the first opposition candidate to win a presidential election in Nigeria

The country, which pump about 2.5 million barrels of crude oil per day, exports all it produces and imports refined products of the same commodity at expensive prices since it does not have its own refinery.

Nigerian prominent businessman, who’s also Africa’s richest man, Aliko Dangote plans to invest over $9 billion in a private oil refinery to capitalize on this gap, but that may take a while before it come on stream.

In the mean time motorists, businesses and manufacturers are struggling with the shortage, which has increased the cost of operations and lead to a rise in consumer prices. Inflation in the Africa’s largest economy rose to 9.2 percent in June, the highest it has been in over two years, Business Day reported.

“I’m supposed to buy fuel for 400 naira, but I’m buying it(from the black market) for 1,500 naira. How am I going to charge my customers for me to make my gain? It’s really crazy,” Lekan Sunmola, a taxi driver in Lagos, tols DW.

Other industries like Agriculture that could provide much need jobs for the growing number of youth have suffered the oil curse with the government, which generates over 80 percent of its revenue from oil export, neglecting them.

“Forget about the oil-money. We are not benefitting from it at all,” Najeemdeen Olugbokiki, a farmer, told DW.