ActionAid Nigeria (AAN) has issued a stern warning that the recent increase in the pump price of Premium Motor Spirit (PMS) to N897 per litre will push millions of Nigerians deeper into poverty and worsen the already challenging economic situation.
In a statement released on Wednesday, Andrew Mamedu, Country Director of AAN, condemned the sudden hike in fuel prices, stressing that it has plunged Nigerians into “deeper economic woes and excruciating pains.”
He noted, “In May 2023, just before President Tinubu’s inauguration, petrol prices were already high at N185 per litre, causing widespread discontent among Nigerians due to the accompanying high cost of goods.
However, on his first day in office, fuel prices skyrocketed to N500 per litre, leading to a sharp surge in the prices of essential commodities.”
Mamedu continued, “Since then, fuel prices have continued to rise steadily. By August 2023, it reached N626.70 and continued to fluctuate, surmounting N668.3 in January 2024 and N770.54 in July 2024. As of September 2024, it has increased again to a staggering N897 per litre, which greatly worsens the situation for many Nigerians.”
The statement attributed the rising fuel prices to the nation’s dependence on imported fuel, heavily influenced by the dollar-to-naira exchange rate.
“Nigeria’s fuel pricing is heavily influenced by the dollar-to-naira exchange rate due to the country’s reliance on imported fuel, which is denominated in US dollars (USD).”
Mamedu also called for greater transparency in fuel pricing: “ActionAid Nigeria strongly condemns this development, which will push millions of Nigerians deeper into poverty. We demand transparency in fuel pricing, including a clear breakdown of costs and revenues associated with fuel imports, refining, and distribution. The Federal Government must provide a detailed explanation of the fuel pricing mechanism to ensure accountability and trust.”
He emphasized the vulnerability of Nigeria’s fuel pricing to exchange rate fluctuations, stating, “This direct correlation between exchange rates and fuel prices makes Nigeria’s fuel pricing vulnerable to exchange rate fluctuations. Any changes in the dollar-to-naira rate will have a ripple effect on fuel import costs, ultimately impacting the prices consumers pay at the pump, and highlighting the need for a more stable exchange rate to mitigate the volatility in fuel pricing.”
Acknowledging the recent increase in the minimum wage from N30,000 to N70,000, Mamedu pointed out that, “It fails to address the root causes of inflation and does little to alleviate the suffering of Nigerians, who continue to bear the brunt of skyrocketing commodity prices, particularly fuel costs. We need a comprehensive and sustainable solution, not just a quick fix to silence the masses.”
He further called for the establishment of an independent committee to oversee fuel pricing: “To address the root causes of this crisis, we also demand the establishment of an independent committee to monitor fuel pricing and ensure transparency. This committee must include representatives from civil society, the private sector, and government agencies.”
Additionally, Mamedu urged the Federal Government to invest in local refineries and provide targeted support to vulnerable citizens and small businesses affected by the fuel price increase.
“The Federal Government must prioritise the welfare of Nigerian Citizens over revenue generation and provide a comprehensive plan to protect vulnerable citizens and support small businesses within 48 hours.”
Finally, Mamedu emphasized the need for comprehensive economic reforms, saying, “The Federal Government must implement a comprehensive economic reform plan as soon as possible, including measures to diversify the economy, increase foreign exchange earnings, and stabilize the naira. This plan should include specific targets and timelines for reducing inflation, improving foreign investment, and promoting local production. We demand transparency and regular progress updates to ensure accountability and build trust with the citizens.”
He concluded by stating that, “ActionAid Nigeria will hold the government accountable for their actions and demand a better future for all Nigerians. We will take all necessary actions to ensure that the government is held accountable to Nigerian citizens.”