Business
Surging fuel prices force Nigerians to abandon vehicles at home
The escalating cost of fuel in Nigeria has forced a significant number of citizens to abandon their vehicles, a development that is reshaping daily life and raising concerns among stakeholders about broader economic consequences.
The average Nigerian motorist, already strained by the country’s tough economic conditions, is grappling with the steep rise in fuel prices that has surged to record highs.
The spike in fuel prices is largely attributed to the removal of subsidies in 2023, a move that government officials argued was necessary for fiscal sustainability.
The removal saw the price of Premium Motor Spirit (PMS) more than double overnight, climbing from approximately ₦197 per liter to over ₦500, with recent fluctuations exceeding ₦1, 200.
This policy change was intended to free up public funds but has inadvertently deepened economic pressures on ordinary Nigerians.
Dr. Adeolu Akinbayo, an energy economist, explained, “The removal of subsidies was expected to create a more competitive market and attract investment into the sector. However, without an accompanying improvement in public transportation or increases in wages, many Nigerians are facing tough choices.”
The surge in fuel costs has forced motorists to rethink their reliance on personal vehicles, leading to an increase in parked, unused cars across cities. Commuter bus parks and neighborhoods are dotted with vehicles left idle as their owners opt for more affordable, albeit crowded, public transportation.
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Chukwuemeka Nwosu, a small business owner in Lagos, shared, “I used to drive my car daily, but with the current price, I simply cannot afford it anymore. I now rely on public buses, which are cheaper but far from convenient.”
The strain on vehicle owners is echoed in rural areas as well. In places where public transportation options are sparse, the impact of high fuel prices is even more acute. Farmers and traders, who rely on small trucks for transporting goods, report difficulties in sustaining their operations. Nkechi Okoro, a trader from Enugu, lamented, “The cost of moving my goods to market has doubled. I either pass that cost to my customers or risk losing income.”
The decision by many Nigerians to park their vehicles is not without consequences. Transport operators have reported a rise in passenger numbers, but that has also driven up fares due to the increased demand.
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This shift is placing additional pressure on the already stretched public transport system. Moreover, experts warn that the reduced use of private vehicles could have unintended knock-on effects on sectors like auto sales and maintenance services.
“An extended period of reduced car usage can significantly impact Nigeria’s automotive sector,” noted financial analyst Mariam Bello. “Dealers, mechanics, and parts suppliers may see lower demand, which could lead to job losses in those industries.”
Stakeholders are calling on the government to step in with mitigating measures that balance economic realities with citizen welfare. Proposed solutions include targeted fuel vouchers for the most vulnerable populations and investment in alternative public transportation systems.
Energy policy consultant Abdul Karim offered a cautious take: “While subsidies were a fiscal drain, removing them without a phased approach or complementary policies was always risky. We now see the repercussions. It’s essential that the government considers ways to ease the pressure, such as supporting the development of mass transit options or exploring subsidies for public transportation.”