The Nigerian authorities have announced the start of a controversial plan to scrap fuel subsidies – which is expected to push up petrol prices.<\/p>\n
The government has spent more than $8bn (\u00a35.2bn) on the subsidies in the past year and says it will use some of the money to improve infrastructure.<\/p>\n
Labour unions have called for “mass protests”.<\/p>\n
Many Nigerians regard cheap fuel as the only benefit they get from the nation’s oil wealth.<\/p>\n
The announcement was made in a statement from regulators, which said the changes would begin immediately.<\/p>\n
“The Petroleum Products Pricing Regulatory Agency wishes to inform all stakeholders of the commencement of the formal removal of the subsidy on Premium Motor Spirit,” it said.<\/p>\n
“Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding,” it read.<\/p>\n
Nigeria’s two main labour organisations, the Trades Union Congress and the Nigerian Labour Congress, issued a joint statement condemning the move.<\/p>\n
“We alert the populace to begin immediate mobilisation towards the D-Day for the commencement of strikes, street demonstrations and mass protests across the country,” the statement said.<\/p>\n
“This promises to be a long drawn battle; we know it is beginning, but we do not know its end or when it will end.”<\/p>\n
“We are confident the Nigerian people will triumph,” it said.<\/p>\n
Poor infrastructure<\/strong><\/p>\n Nigeria is Africa’s biggest oil producer but most of the available 2 million barrels per day are exported in an unrefined state.<\/p>\n The country lacks refineries and infrastructure so has to import refined products such as petrol, which is expensive.<\/p>\n Nigerians are heavy users of fuel, not just for cars but to power generators that many households and businesses use to cope with the country’s erratic electricity supply.<\/p>\n Petrol prices in Nigeria are currently very low by international standards at $0.40 (\u00a30.26) per litre.<\/p>\n A similar move to end subsidies in neighbouring Ghana last week raised prices by about 15 per cent, oil and gas analyst Dolapo Oni told the AP news agency.<\/p>\n Previous attempts to end the subsidies in Nigeria have prompted industrial action and street protests.<\/p>\n A strike against fuel price rises in Nigeria in 2004 caused most petrol stations to close, leading to transport chaos and a thriving black market in petrol.<\/p>\n The measures just announced could add to the difficulties faced by Nigerian President Goodluck Jonathan, who declared a state of emergency on Saturday in areas hit by Islamist violence. <\/p><\/p>\n","protected":false},"excerpt":{"rendered":" The Nigerian authorities have announced the start of a controversial plan to scrap fuel subsidies – which is expected to push up petrol prices. The government has spent more than $8bn (\u00a35.2bn) on the subsidies in the past year and says it will use some of the money to improve infrastructure. Labour unions have called for “mass protests”. <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25592","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n