First sign of compromise over Nigerian fuel prices

Nigerians took to the streets yesterday in growing numbers on the second day of protests against a jump in petrol prices, piling pressure on president Goodluck Jonathan to reverse his removal of fuel subsidies.

Africa’s biggest oil producer scrapped subsidies on 1 January on imports of motor fuel – which many citizens see as their only welfare benefit – more than doubling the price of petrol to about 150 naira (60p) a litre.

Tens of thousands demonstrated in cities across Africa’s most populous nation.

In Rivers state, in the oil-rich Niger Delta, the local government said it would cap the price of fuel in the state at 137 naira (55p) per litre.

Although this is more than double the previous subsidised price, it is the first sign of local government compromising on the free market message pushed by Mr Jonathan.

Thousands of people gathered outside the labour union headquarters in Lagos and marched to the marina that runs along its wide lagoon. The roads of the normally heaving commercial hub, notorious for its traffic jams, were largely empty.

A group of youths set up a road block of burning tyres on the main bridge over the lagoon connecting Lagos’ two islands to the mainland, shouting at cars to turn back. “The betrayers in government must free us from slavery,” one placard read.

The government estimates it will save 1 trillion naira (£4 billion) this year by eliminating the subsidy.

Finance minister Ngozi Okonjo-Iweala said this week that N90bn a year of the saved money would go on roads and infrastructure, N57bn on rail and N60bn on poverty safety nets.