ActionAid Nigeria Condemns Fuel Price Hikes, Advocates For Economic Reform

ActionAid Nigeria has condemned the latest increase in the pump price of petroleum products and demanded immediate action from the government on economic reform.

According to the non-governmental organisation, increasing the minimum wage from N30,000 to N70,000 was never sufficient to provide economic relief.

ActionAid, in a statement signed on Wednesday by its Country Director, Andrew Mamedu, demanded that the Federal Government prioritise the welfare of Nigerian citizens over revenue generation and provide a comprehensive plan to protect vulnerable citizens and small businesses within 48 hours.

This plan must include measures to reduce the impact of high fuel prices on the poor and vulnerable.

Mamedu lamented: “Since President Bola Ahmed Tinubu took office in May 2023, the removal of fuel subsidies has resulted in a harsh economic reality for many Nigerians.” Despite efforts to recover, the Federal Government’s decision to allow fuel prices to rise again has exacerbated the situation, causing a ripple effect throughout the economy.

“In May 2023, just before President Tinubu’s inauguration, petrol prices were already high at N185 per litre, causing widespread dissatisfaction among Nigerians due to the high cost of goods.

“However, on his first day in office, fuel prices soared to N500 per litre, causing a sharp increase in the cost of essential commodities.

“Since then, fuel prices have steadily increased. It reached N626.70 in August 2023 and fluctuated thereafter, peaking at N668.3 in January 2024 and N770.54 in July 2024.

“As of September 2024, it has risen again to a staggering N897 per litre, exacerbating the situation for many Nigerians.”

He stated: “Clearly, 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.”

As a result of the naira’s depreciation against the dollar, fuel import costs rise, resulting in higher pump prices.

“Due to the direct relationship between exchange rates and fuel prices, Nigeria’s fuel pricing is vulnerable to exchange rate fluctuations.

“Any changes in the dollar-to-naira rate will have a knock-on effect on fuel import costs, ultimately affecting the prices consumers pay at the pump and emphasising the importance of a more stable exchange rate to reduce fuel pricing volatility.”

He went on to say, “It is one thing to solve an impending problem of inflation in the economy, and it is another to provide temporary solutions to keep Nigerians’ mouths shut.” Although the minimum wage has been raised from N30,000 to N70,000, 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 rising commodity prices, particularly fuel prices. We require a comprehensive and long-term solution, not a quick fix to silence the masses.”

Regarding the latest increase, Mamedu stated, “ActionAid Nigeria strongly condemns this development, which will push millions of Nigerians deeper into poverty. We demand transparency in fuel pricing, including a detailed breakdown of the costs and revenues associated with fuel imports, refining, and delivery. The federal government must provide a detailed explanation of the fuel pricing mechanism to ensure accountability and trust.

“To address the root causes of this crisis, we also call for the formation of an independent committee to monitor fuel prices and ensure transparency. This committee’s members must come from civil society, the private sector, and government agencies. Furthermore, the federal government should invest in Nigerian refineries and provide targeted assistance to vulnerable citizens and small businesses affected by fuel price increases.”

He stated, “Concurrently, 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 stabilise the naira.” This strategy should include specific goals and timelines for lowering inflation, increasing foreign investment, and encouraging domestic production. We demand transparency and regular progress updates to ensure accountability and public trust.”

Mamedu warned that ActionAid Nigeria would hold the government accountable for its actions and demand a better future for all Nigerians. We will take all necessary steps to ensure that the government is accountable to Nigerians.