Gas prices are rising in Nigeria and with them the anger of Nigerians, since the State put an end to a fuel subsidy system, in an attempt to fill its coffers, emptied by the Covid-19 pandemic.

In recent days, the price of gas at the pump has reached 162 naira per liter (0.36 euros), an increase of almost 15%, as a consequence of the deregulation wanted by the Nigerian government.

Although these prices seem low compared to prices in other countries, it is a blow to Nigerian consumers who consider cheap fuel to be one of their few privileges as citizens of Africa's top crude producer, which is undermined by poverty and corruption.

“We really feel it,” complains John Kayode, an engineer who comes to fill his car in downtown Lagos, “fuel is a basic necessity. This price increase affects all sectors of the economy.

People in Africa's most populous country - almost half of whose 200 million inhabitants live below the poverty line - have benefited from artificially low prices at the pump for years.

Nigeria has only tiny refining capacities, forcing the authorities to subsidize imported fuel with billions of dollars.

But in the face of the global recession triggered by the novel coronavirus, in particular the collapse in crude prices in recent months that has deprived it of a huge part of its revenues, Nigeria has been forced to withdraw these expensive subsidies.

At the same time, the government announced an increase in electricity prices, which will double from 33 to more than 60 naira per kilowatt.

President Muhammadu Buhari defended these increases on Monday, “a crucial decision” given the collapse in oil revenues.

“There is no provision for fuel subsidies in the revised 2020 state budget, simply because we cannot afford them if we want to have the necessary funds for health, education and other social services,” he said. “We just don't have a choice.”

- 'An afffront' -

But this decision has triggered the anger of the population, already struggling with the economic slump and inflation.

Ayuba Wabba, the president of the Nigerian Labour Congress (NLC) union, speaks of “an affront to the Nigerian people who are bearing the heavy burden of the Covid-19 pandemic. “and promises that the unions will resist this “umpteenth attempt to impoverish the mass of

For its part, the NGO Serap is considering taking legal action against a measure that “will put lives at risk and further exacerbate poverty and inequalities already amplified by the pandemic.”

the streets of Lagos, Liliana Ebosele, a factory employee, is calling for lower prices “to allow the masses to survive.

The rise in fuel also hurt the income of Chinedu Egbunike, a 41-year-old bus driver. “I earn less money because passengers are not prepared to pay more to amortize the increase,” he explained to AFP

- 'Adjustments needed' -

But an end to costly state interventionism had long been called for by international donors, who again lobbied authorities this year in urgent need of funds to make ends meet.

For the economist Michael Famoroti, this subsidy system - known to be marked by corruption - was no longer viable.

“When global crude oil prices crashed and Covid emerged, the Nigerian government was experiencing cash flow difficulties. As in other countries, he needed to find money to revive the economy.

The distributors who manage the country's service stations also welcome the end of price controls, which were cutting back on their margins.

“We have been fighting for the deregulation of the sector for years,” recalls Tunji Oyebanji, president of the Nigerian Fuel Distributors Association.

It ensures that the interplay of supply and demand, as well as fair market competition, will eventually allow prices to be adjusted.

“The president's decision is a first step in the right direction. Some adjustments are still necessary for this measure to bear fruit, “he believes.