Relentless Fuel Price Hike A Ticking Time Bomb For Poor, Vulnerable Nigerians- ActionAid

By Bukar BOLORI

ActionAid Nigeria has cried that the persistent increases in fuel prices have brought Nigerians to their knees, and worsening the already dire situations of poverty and hunger in the country, raising the alarm that as Nigerians continue to eke a living with the present situation of things in the country there may be increase in kidnapping, armed robberies, and other violent crimes.

Speaking in Abuja, ActionAid Nigeria’s Country Director, Andrew Mamedu lamented that the latest series of increases has made life unbearable for struggling families, small business owners, and vulnerable communities who are barely managing to make a living.

He said: “We foresee that this economic hardship and hopelessness may likely create a fertile ground for crimes to thrive, with kidnapping, armed robberies, and other violent crimes, especially during the festive season. Transportation costs have also more than doubled, and food has become a luxury that many cannot afford. As it stands, Nigeria’s healthcare system is also affected, with recent reports indicating that at least 50% of private hospitals have been forced to shut down, while those that remain are barely surviving due to high operating costs. This has devastating consequences for Nigerians, leaving many without access to proper healthcare services. The government’s inadequacies in providing pro-poor policies have created an economic and social crisis that threatens all spheres of our society.’’

Mamedu also lamented that despite a recent drop in global crude oil prices, fuel prices in Nigeria continue to soar due to the naira’s persistent decline against the US dollar.

He also reiterated that within less than a year, the price of crude oil has reduced from $80.36 in August 2024 for a barrel to $74.05 in October 2024.

However, Nigerian consumers are not benefiting from this decline due to the country’s volatile currency exchange rates.

ActionAid Nigeria questions the Federal Government’s decision to refrain from purchasing petrol from Dangote Refinery, noting that: “In a free-market economy, consumers naturally gravitate toward the most affordable option. So, is Dangote Refinery’s fuel truly not cheaper? If so, why? Or are there underlying policies or regulatory factors in Nigeria that inflate the cost of this petrol, making imports more favourable?”

Mamedu further decried that Nigeria’s ranking in the 2024 Ibrahim Index of African Governance has dropped to 33rd out of 54 African countries, highlighting the corrosive impact of corruption and poor governance on the country’s development.

“With alarming scores in inclusion (47%), equality (43%), and infrastructure (41%), the report underscores the urgent need for institutional reforms. The entrenched corruption and weak institutions perpetuate poverty, affecting 62.8% of Nigerians, while hindering economic growth and undermining national progress.”

He noted that: “To break this cycle, Nigeria must prioritise transparency, invest in critical infrastructure, and implement social protection policies to address disparities in healthcare, education, and economic opportunities, ultimately unlocking its potential for inclusive growth and development.”

The Country Director said: “The nation is witnessing unprecedented levels of poverty, inequality, and hardship. The slow and inadequate response of the Nigerian Labour Union and civil society is also concerning. The situation in Nigeria right now is multidimensional, and to address the worsening economic situation, ActionAid Nigeria demands that the federal government makes fuel prices affordable for Nigerians, improves transparency and accountability in the oil sector, and better manages the exchange rate to stabilize fuel costs. We cannot afford to continually endure the Federal Government’s lack of pro-poor actions. The government must take concrete steps to alleviate the suffering of Nigerians and ensure that the country’s resources benefit its citizens.”

ActionAid Nigeria is a national non-governmental, non-partisan, non-religious, civil society organisation, and an affiliate member of the ActionAid International Federation with presence in 45 countries.

It works in solidarity with people living in poverty and exclusion to achieve social justice, gender equality and poverty eradication towards achieving a just, equitable and sustainable world in which every person enjoys the right to a life of dignity, freedom from poverty and all forms of oppression.