Abuja (dpa) – Essien Nsika, a taxi driver in Nigeria's capital Abuja, had been hoping for a peaceful start to the new year. Instead Nsika, and millions like him, woke up on January 1 to the news that the government was scrapping fuel subsidies, effectively doubling the price of fuel and adding to the stress that drivers on Abuja's choked streets already face. “It should not have been implemented on January 1,” said Nsika. “We had a sorrowful Christmas with the spate of (Boko Haram) attacks,” he said referring to a recent series of bombings on Christian churches by the radical Islamist group. “We don't need this heart-wrenching increase in fuel.” Prices at many petrol stations have already hit 130 naira (0.85 dollars) per liter, more than double the previous cost, at 65 naira. Long queues formed at stations on Sunday and Monday as drivers tried to fill up their tanks amid speculation that costs might rise further. A statement released by the Petroleum Products Pricing Regulatory Agency (PPPRA) said new prices will be determined fortnightly, with an initial capping at 141 naira per liter. The move is part of an effort to curb government spending: Fuel subsidies cost President Goodluck Jonathan's administration more than 8 billion dollars in 2011. The World Bank and International Monetary Fund (IMF) have suggested that developing countries remove fuel subsidies in order to cut reliance on fossil fuels and be better placed to adapt to climate change. Nigeria is the second country in West Africa to scrap fuel subsidies in recent days. Ghana has seen a 15 percent spike in costs after its subsidies were removed last week. Nigerian economists say the move will allow for increased spending on roads, health care and education. But, in a country where the minimum wage is 140 dollars per month, and where frequent blackouts mean many are reliant on fuel-powered generators, many are angry at the decision. Increases in the cost of public transport, non-locally produced food and other petroleum products are expected. “The price of imported refined petroleum products will now be determined by the value of the naira,” said Babatope Babaloi, coordinator of the activism group Movement for Revolutionary Change. “If this new astronomical increase is not challenged now, the common man is doomed to suffer from new price increases every two weeks,” he said. Nigeria is Africa's biggest petroleum producer and many feel they are entitled to the subsidy. The country exports most of the 2 million barrels per day it produces. Unions, including the Nigerian Labour Congress – which calls the price hike “a bad new year gift” – have called for protests in the coming days. Commentator Abdullahi Musa said Nigerians have little confidence in the government's decision. “The government has tried to justify (this), but … where will the money accrued from oil go to? Private pockets we believe,” he said. “We have many challenges impeding on our nation's growth … power, drinking water, bad roads, poor infrastructure. The government should concentrate on providing these basic amenities,” he added. Fish seller Patricia Maku said the subsidies have been scrapped without viable alternatives in place. “Before removing the subsidies, so many things ought to have been put in place. For instance, we lack mass transit buses … this whole thing will make life more difficult as it will impact on all areas like housing, school fees and transportation,” she said. Jonathan defended the new policy Monday, saying it will unlock social capital required for the development of infrastructure. But Nigerian commentators are unimpressed. Jonathan's government has already come under fire for what some see as ‘weak' efforts to bring down radical Islamist group Boko Haram. Jokes circulated in some Abuja restaurants Monday. “What's the difference between the government and Boko Haram?” says one. “At least Boko Haram admits responsibility for making our lives hell,” goes the answer. BM ShortURL: http://goo.gl/WiDMm Tags: Gas, Nigeria, Oil, Subsidy Section: Business, Latest News, West Africa
