Nigeria struggles with gasoline shortage despite refinery investments

Nigeria’s underperforming refineries are not able to meet the rising demand on gasoline in the most populous African countries where queues are becoming longer in gas stations.

The shortage sent prices skyrocketing which further erodes the purchasing power of most of the population as the prices of transport surge.

The long waiting hours are causing hardship for millions in Nigerian big cities. Queues leading to gas stations stretched up to 3 kilometers in some cities including the national capital, Abuja.

In Abuja, the cost of fuel increased by more than 15%, further complicating power generators in a country where power outages are commonplace.

Although a crude exporter, Nigeria has for years relied on imported refined oils.

Nigerian industrialist Aliko Dangote has spent years developing the continent’s largest refinery on the outskirts of Lagos. The $19 billion facility has the capacity to refine about a third of the country’s daily output and finally opened for business earlier this week.

Nigeria is expected to slip in the ranking of Africa’s largest economies to the fourth place, outperformed by Egypt and South Africa.