Situation in Nigeria #1: Fuel Hike
Its not uncanny to see prices of foods, products and services rise, but the drastic hike in the sale price of premium motor sprit in Nigeria is quite alarming, as a result of this people team up for protest last month. I heard they are planning for another one.
It's a shame the media refuse to carry this(maybe few of them have) fuel hike on international news. But since STEEM is my main social media base which I spent good part of my day on, I feel it would be nice to share it here. At least other friends from other part of the world can have a glimpse of the present situation in Nigeria.
I am aware @soulsdetour's country is facing almost the same hard situation, I am not certain about the challenge @weisser-rabe's country is facing presently, I am not saying they are in paradise either.
The cost of transportation now is neck breaking. A single drop which used to cost ₦50- ₦100 Naira equivalent to 0.17 to 0.356 Steem now costs about 200 to 300 Naira equivalent to 0.712 to 1.068 Steem.
By the way, I don't even blame the transporters, those guys buy petrol at #1400(one thousand four hundred naira) a liter which is equivalent to 4.977 Steem. For crying out loud, this is too much for a liter of fuel in an oil producing country. Africa's largest producer of crude oil!
This only left me considering with tears the question @o1eh asked last week on one of his post
Why is Venezuela poor with huge reserves of oil and gas, with paradise beaches where millions of tourists should be? Why is Nigeria, Africa's second largest oil country, poor?Ref.
Hence the reason I didn't respond to that post, that post was so emotional. I keep asking myself those same questions. It's a shame we are rich with mineral resources but our economy is poor.
So basically, trying to negotiate a transport fare with cab and tricycle drivers now in Nigeria is like initiating a fight. I have seen many fights in front of my shop as a result of late transport negotiation. Did I say I have seen? Oh NO! I mean I have settled many fights - uncountable.
Everyone now has a thing for trekking but is this really worth it, how is this affecting Nigerians, is our government doing anything on our behalf?
This hike in fuel price is like a pandemic that has struck every citizen in Nigeria, young and old whether they have a vehicle or not.
This is an adverse effect of:
- The removal of fuel subsidy
Removal of fuel subsidy seems to be a SCAM as the cost of fuel rises from 165naira to 1400 naira a liter and even more in the black market within a year. Even worse - this subsidy has no momentous effect on the GDP (Gross domestic product) of the country. We still incur the same old debts we inherited.
- Dependence on refined products:
As long as Nigeria is dependent on imported products, the prices of fuel will flow along with the exchange rate in the international market. And as evident, US dollar VS Nigerian Naira always has the former on the increase on a daily basis contributing to the high cost of fuel.
- Greedy officials and fuel stations:
Those ones don't bear the brunt of this National epidemic they are rather benefiting and making excess profit from it. To them it's an opportunity to get rich and wealthy while having their share of the national cake. Ending up in impoverishing others and adding many to penury.
What have been the overall effect of these?
- High transportation rate:
Moving from home to business places, markets etc. Becomes increasingly difficult as the cost of transportation doubles up.
Roads become vehicle dry with more pedestrians trekking due to inability to board an affordable cab.
Little wonder why the youths compose the comic song below and this song has been trending on the internet for the past 8 months.
The idea behind the song is actually discouraging paying of high cost of transport but instead encourages walking with legs no matter your destination 😂. It's a comedy but it's a strong message to those influencing fuel price in Nigeria.
- Inflation on day to day goods and services:
Marketers, wholesaler, retailers all operate with fuel. Moving the goods from ware house to market and even in the production process. All these are calculated into the price of the goods making it unaffordable for citizens to purchase.
*Down scale of small and medium business enterprises:
Small and medium business enterprises like hair dressers, dress makers, shoe makers, barbers and the likes uses electrical appliances which involves the use of fuel. With the current price, it only ends up reducing their profit or even putting them at lost or worse outside the business. I spend high now in shaving my hair at the barber's shop.
- General increase in cost of living of citizens:
Individual house holds needs to charge basic house appliances, pump water, lighting and other uses. The high cost of fuel will only add to Impairing their activities. Subjecting many to low livelihood and a cruel economy with no hope.
The future
While subsidy could be a good way to relief Nigerians of this burden, using our own refined fuel from our local refineries will help eliminate to a great extent the hike in the premium motor spirits.
The government on the other hand have introduced concepts like cash transfer programs and public transportation subsidies. We don't know for sure how this will play out if it even will, I don't trust Nigeria.
But what we do know is that if nothing is done about this, just like the previous years, the cost of fuel will continue to be on the high side.
A commodity only those of the high class will afford and Nigerians will continue to bear the brunt that comes with it along side the other economic and social effects that trails along.
But for now, I will encourage you especially Nigerians to think ahead as the future is not certain. Solar power purchase is one way to think ahead. Do not be caught off guard dear citizens.
If you operate a daily business that relies on electricity, it's not advisable to use a gasoline generator at this time due to the high cost of petrol.
Think about it for a moment:
Assuming your generator consumes at least 5 liters of fuel daily, that's about 30 liters for 6 days.
Guess the cost in a week.... It would be approximately ₦42,000(naira) which is equivalent to 149 STEEM in a week.
Multiply that by 4 weeks (1 month) and it's ₦168,000 (one hundred and sixty-eight thousand naira) which is equivalent to 596 STEEM.
Now, multiply that result by 12 months (1 year) and you get ₦2,016,000(naira) which is equivalent to 7,152 STEEM.
Isn't that enough to justify installing a small solar system to power your shop? Well, this was just an idea.
Maybe with the way things are going, I might buy an electric car in the future (vision 2027) 😀. Has anyone here use it before...?
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Very sorry to read this. Regardless of how far our countries are, similar things happen in all of them. This has happened several times here in Ukraine over the past 30 years. Fuel prices rose suddenly, and sometimes there was even a shortage at gas stations.
Unfortunately, this is only the first stage. After the increase in fuel prices, the prices of all other goods, without exception, rise. This leads to the impoverishment of the main mass of the population.
Under such conditions, the authorities try to calm everyone down by telling stories about subsidies. But six months will pass and fewer people will be entitled to the subsidy. In the next six months, there will be even fewer such people. Eventually, everyone will somehow imperceptibly forget about the subsidies.
The reason, of course, is corruption, only occasionally - in stupidity.
For you personally, this will mean that it will be harder for you to sell your product because it will also increase in price. It's sad, but it's not a reason to give up, and I'm sure you didn't think about it 💪
I know each country has their own big challange no matter how it looks calm.
Sad to hear this same thing has happened in Ukraine. I can't remember, is Ukraine part of the oil producing country....?
If it's not.., then it might be understandable the reason behind fuel hike there..., but if it is..then this could be a little bit annoying just like how we felt here in Nigeria.
We own oil but we are suffering. We know the reason why it is that way.., unfortunately, I'm not sure if this reason would ever be solved in this world.
We already know their format and strategies sadly.
They would come out to bribe the poor masses with 2 cups of rice each family during their vulnerable state knowing fully well of their despration at such point.
Maybe they'll share a few bucks that won't even last these vulnerable people for two days. Sometimes they do nothing but lying on the news. And yet, the media would spread such outrageous lies quickly like wildfire.
And the main problem still remain unsolved. What a shame. This is what we see every time.
0.00 SBD,
10.51 STEEM,
10.51 SP,
0.00 TRX
Ukraine imports oil and processes it into oil products on its territory. This is a rather vulnerable part of our economy.
Yes, and they know very well why they spread only those news that are beneficial for the government. It's a pity, the same things happen everywhere 😥.
The worst thing is that there are no quick solutions. You will have to live with this system. Maybe it will change little by little, but even with intensive changes for the better, only your children will feel it. Therefore, you should rely only on yourself. I wish you success in your business. 🙂
0.00 SBD,
0.07 STEEM,
0.07 SP,
0.00 TRX
In Bulgaria, fuel has also become more expensive in recent years, even in recent days we have noticed that it has become cheaper by a few cents, which is quite atypical, and now it is around 2321 Naira. Of course this, as well as the price at your place, is grossly out of proportion to your minimum wage. And also the fact that your country is an oil producer. This is outrageous!
To me the gas problem is a conspiracy by the EV companies lol. Or at the very least, it was created so that a handful of people could quickly become rich, again. In Bulgaria, too, the prices could not/did not want to be regulated at the central level, there were subsidies, but as O1eh explained, these are very specific means that simply cover people's eyes. I think the only solution is for people to rise up and protest. Only then can something be done, something changed. In Bulgaria, people very rarely protest, they can only do this if they are organized by political parties and are paid, so the rulers know that they can do whatever they want with the population, they can increase prices as much as they want, nobody will do anything against it, but this is not good. It is good that people in Nigeria are organizing and doing something.
And yes, they haven't said anything on TV really, I keep a close eye on international news that is shown, recently there was news only from brotherly Venezuela, lol.
So this matter about fuel isn't just one place, I guess.
#2321 naira huge for a litre of fuel, but I know that's where Nigeria is heading to...most likely before December this year.
It's a shame that civil servants might have to walk down to their place of work. Our minimum wage is very poor!
Some weeks, I spend more than that amount and it's not even enough. I have a lot of seriouse responsibilities that I take care of every month.
And that's what an oil producing country is paying as minimum wage while the politicians embezzled the rest and spending lavishly.
None of their children is schooling here in Nigeria.
None of them are taking medical treatment here in Nigeria.
Most of their businesses are not established here in Nigeria.
The entire systerm is corrupt.
0.00 SBD,
6.52 STEEM,
6.52 SP,
0.00 TRX
Of course they won't. I especially love it when the pro-Russian politicians send their children to study and live forever in America, but try to convince the poor people in Bulgaria how good it is in Russia and what a wonderful political and any system they have. Politicians who fight against the introduction of the euro as the official currency in the country, but keep all their funds in euros. Politicians who are sponsored by Russia and push their ideas into society, then it turns out that they are also sponsored by the USA, etc. And then these people go out every night on television to argue with each other, insult and attack each other. Bulgaria is constantly in a permanent political scandal. I don't know how it is in Nigeria, but I realize that when politicians do this, it is because, through spectacle, they want to divert the attention of the poor people from the insufficient bread on their table and the constant social injustices in the country created by these same people. It's all just a spectacle, skillfully orchestrated and shamelessly performed. I do not believe a single word spoken by a politician and I know that nothing in the country will change for the better. Keep that in mind. Global consideration of the issue does not lead to any positive hopes for the future for so many reasons.
0.00 SBD,
2.44 STEEM,
2.44 SP,
0.00 TRX
In Germany, 30 litres of petrol would cost the equivalent of around 320 Steem. But that's the case with all consumer goods. So our worries are no different, just on a different level... However, we don't need the petrol to run generators for a bit of electricity. So maybe your problems are more serious after all...
That's a lot too for just petrol. Like I mentioned in the both comments above, I think everyone is just having their own tough time.
But here...it looks like ours is too much.
0.00 SBD,
0.13 STEEM,
0.13 SP,
0.00 TRX