NASU warns of impending crisis in Nigeria, urging the government to halt the spiralling fuel prices. It creates a ripple effect that worsens inflation.
The Non-Academic Staff Union of Educational and Associated Institutions (NASU) has urged the Federal Government to stop the rising petrol prices. They also warned about the falling value of the naira. These issues could lead to mass revolt.
Dr. Makolo Hassan, President of NASU, spoke at the union’s National Executive Council (NEC) meeting in Abuja. He expressed concern about how rising fuel costs drive up transportation and production expenses. This creates a ripple effect that worsens inflation.
Hassan stated, “Nigeria’s abundant crude oil should be a blessing. Instead, it makes the economy vulnerable to global oil price fluctuations.” He noted that the over-dependence on oil does not support sustainable growth. It exposes Nigeria to external shocks and leads to economic instability.
Diversification is elusive, NASU warns
Despite discussions on diversifying the economy, little progress has been made. Agriculture, manufacturing, and technology sectors remain underdeveloped. The much-talked-about diversification is still a mirage. Insufficient investments keep Nigeria stuck in a cycle of boom and bust driven by volatile oil markets.
Hassan highlighted that petroleum product prices are affected by the non-functional state of government refineries. Nigeria relies heavily on fuel imports despite being a major oil producer. The lack of domestic refining capacity forces the government and marketers to buy refined products at fluctuating international prices.
This situation burdens the economy and consumers. It also politicizes the petrol subsidy dispute. The Dangote Refinery was expected to help alleviate some of these issues. However, it faces challenges within Nigeria’s regulatory environment.
Need for decisive action
Hassan added that the Nigerian National Petroleum Corporation Limited (NNPCL) has embarrassed the nation. It has failed to revive government-owned refineries, which remain mostly non-operational. Despite years of promises and investments, the NNPCL has not restored these vital assets.
Instead, NNPCL focuses on controlling the petrol distribution market. This shift concerns NASU. They believe NNPCL should prioritize restoring domestic refining capacity. The irony lies in NNPCL, a state-owned enterprise, neglecting its own refineries while competing with private sectors.
Hassan pointed out that rising inflation, along with the naira’s continuous devaluation, has hurt citizens’ purchasing power. This has created a cost of living crisis. Basic goods and services are becoming unaffordable for many Nigerians. The economic strain worsens poverty levels and increases pressure on a population already facing high unemployment and underemployment.
NASU warns of urgent need for change
As prices of essentials rise, many households struggle. The escalating cost of fuel drives up transportation and production costs, worsening inflation. NASU warns that if the government does not act swiftly, the situation will escalate. Public frustration over the energy crisis grows, and citizens demand change.
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