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Tuesday, May 26, 2015

Epic Gas Shortage in Nigeria

Incumbent Nigerian President Buhari faces a major fuel crisis as he prepares to take office.

Major fuel crisis in Nigeria 2015

Epic Gas Shortage in Nigeria

The companies that import fuel say they haven't been paid by the Nigerian government. Nigeria is about to install a new president on Friday, May 29th, in March 2015, former military leader Muhammadu Buhari defeated incumbent Goodluck Jonathan. 

Buhari’s All Progressives Congress accused outgoing President Goodluck Jonathan of sabotaging the new administration by creating a fuel shortage.  Major fuel marketing companies allege they’re still owed $1 billion in outstanding payments by the outgoing government of President Goodluck Jonathan. Nigeria does not have the capacity to refine enough of its own oil to meet the needs of its nearly 150.5 people.

“Never in the history of our country has any government handed over to another a more distressed country. No electricity, no fuel, workers are on strike, billions are owed to state and federal workers, $60 billion are owed in national debt, and the economy is virtually grounded,” APC spokesman Lai Mohammed, said in a statement Sunday. “The whole scenario reeks of sabotage.”

Nigerian President Buhari Nigeria is Africa’s second largest economy and one of Africa's largest oil producers however, Nigeria depends on fuel imports to meet more than 70 percent of its domestic needs and pays importers to guarantee cheaper local prices. 

The fuel crisis in Nigeria has grounded airplanes, shut down banks and threatens businesses. South Africa-based multinational mobile telecommunications company, MTN is Africa’s biggest mobile phone company with 61 million customers in Nigeria. 

MTN stated its running low on fuel reserves and its phone network will be significantly degraded if it doesn’t receive fuel supplies. Fuel in Nigeria is used not just to run cars and transport for goods and services, but also to power generators for homes and businesses; most Nigerians get only a few hours of electricity a day. Nigerians are no strangers to fuel shortages; the country went through similar fuel shortages in 2012.

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