Vice President Kashim Shettima has summoned key figures in Nigeria’s petroleum sector following the recent surge in the price of Premium Motor Spirit (PMS), commonly known as petrol. Among those called to the Presidential Villa on Thursday were the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; the Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari; and the National Security Adviser, Nuhu Ribadu. The meeting is being held in Shettima’s office at the State House in Abuja.
This development follows NNPCL’s decision on Tuesday to raise the pump price of petrol from ₦568 to between ₦855 and ₦897 per litre, depending on the location. This price hike has exacerbated the ongoing fuel scarcity and added to the country’s economic challenges. Private suppliers have been selling petrol at even higher rates, with some stations charging as much as ₦1,200 per litre by Wednesday.
The NNPCL’s price increase came shortly after the company admitted to financial struggles in maintaining fuel supplies. In several major cities, including Lagos, Abuja, and Kano, private petrol stations remained closed on Wednesday, while long lines of vehicles were seen waiting overnight outside NNPCL fuel stations.
Public Outcry and Condemnation
The sudden increase in fuel prices has sparked outrage across the country, with several groups and individuals condemning the move. Among the most vocal critics are the Nigerian Labour Congress (NLC), the Trade Union Congress (TUC), the Nigerian Bar Association (NBA), and the Nigerian Medical Association (NMA). They argue that the price hike will worsen the economic hardship already faced by Nigerians.
NLC President Joe Ajaero expressed deep dissatisfaction with the government’s actions, accusing it of betraying the labour movement. He called for an immediate reversal of the fuel price hike, alongside the release of individuals who were arrested for participating in recent protests. Ajaero also demanded an end to policies that, in his view, promote hunger, insecurity, and government-induced fear and intimidation.
“We demand the immediate reversal of the latest increase in the pump price of PMS across the country and the release of all those incarcerated or prosecuted for recent protests,” Ajaero stated. He also called for the cessation of indiscriminate arrests, a reversal of the 250% electricity tariff hike, and a halt to what he described as the government’s interference with the Ministry of Labour and Employment’s duties.
Nigeria’s Economic Struggles and ‘Renewed Hope’
Despite being a major oil producer, Nigeria imports most of its petrol due to its limited refining capacity. This has led to sporadic fuel shortages over the years. Presidential aide Bayo Onanuga defended the decision to raise fuel prices, explaining that it was necessary to support the NNPCL, which has been struggling financially to meet its obligations to the federal government.
Onanuga further explained that the expected start of petrol production for local markets at the Dangote Refinery, Africa’s largest, would provide much-needed relief to the economy. He noted that while the situation is difficult, these measures are essential to ensure the survival of the NNPCL, keep the government running, and maintain fuel supplies. “There are no easy choices,” he said, “but something must be done to make NNPC survive, keep the engines of government running, and petrol flowing.”
President Bola Tinubu, who took office over a year ago, has promised a “Renewed Hope” agenda aimed at stabilizing the economy and attracting investment. His administration has implemented a series of reforms, including the removal of fuel subsidies that previously cost the government billions of dollars annually to keep petrol prices artificially low. Tinubu has also taken steps to liberalize the naira.
Despite these efforts, inflation has surged, reaching a 30-year high of 34% in June. Although inflation slowed slightly in July, food prices remained a major concern, with food inflation at 39.5%.
In response to the rising cost of living, the government more than doubled the minimum wage for public sector workers to ₦70,000 per month in July. However, by Wednesday, the latest fuel price hike had already led to an increase in transportation and food prices, further straining the pockets of Nigerians.
A Call for Patience
Officials have urged Nigerians to be patient as the government’s reforms are expected to yield long-term benefits. However, the immediate impact of the fuel price hike has deepened public frustration, as many continue to struggle with the rising cost of living.
