Lagos (AFP)

Gasoline 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 replenish its coffers, emptied by the Covid-19 pandemic.

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

Although these prices seem low compared to tariffs in other countries, it is a blow to Nigerian consumers who view cheap fuel as one of their few privileges as citizens of the world's largest crude producer. Africa, plagued by poverty and corruption.

"We are seriously feeling it," complains John Kayode, an engineer who comes to fill the tank of his car in the center of Lagos, "fuel is a staple. This price increase affects all sectors of the economy. . "

People in Africa's most populous country - nearly half of its 200 million people live below the poverty line - have enjoyed artificially low pump prices for years.

Nigeria has very little refining capacity, forcing the authorities to subsidize imported fuel with billions of dollars.

But in the face of the global recession triggered by the new coronavirus, including the collapse in recent months in crude prices that deprived it of a huge share of its revenue, Nigeria has been forced to reverse these costly subsidies.

At the same time, the government also announced an increase in electricity tariffs, which will double from 33 to over 60 naira per kilowatt.

President Muhammadu Buhari on Monday defended the increases, "a crucial decision" in view of the collapse in oil revenues.

"There is no provision for fuel subsidies in the revised state budget for 2020, and this is simply because we cannot afford it if we are to have the necessary funds for health, l 'education and other social services,' he said.

"We just don't have a choice."

- "An affront" -

This decision triggered the anger of the population, already grappling with the economic slump and inflation.

Ayuba Wabba, president of the Nigerian Labor Congress (NLC) union speaks of "an affront to the Nigerian people who bear the heavy burden of the Covid-19 pandemic."

and promises that the unions will resist this "umpteenth attempt to impoverish the mass of workers".

For its part, the NGO Serap is considering legal action against a measure which "will endanger lives and further aggravate poverty and inequalities already amplified by the pandemic".

In the streets of Lagos, Liliana Ebosele, a factory worker, calls for lower prices "to allow the masses to survive".

The fuel increase has also hurt the income of 41-year-old bus driver Chinedu Egbunike.

"I earn less money since the passengers are not ready to pay more to cushion the increase," he told AFP.

- "Necessary adjustments" -

But the end of the costly interventionism of the State had long been demanded by international donors who again put pressure this year on the authorities in urgent need of funds to complete their budget.

For economist Michael Famoroti, this system of subsidies - deemed marked by corruption - was no longer viable.

"When global crude prices collapsed and the Covid emerged, the Nigerian government was in cash flow difficulties. Like in other countries, it had to find money to revive the economy."

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

"We have been fighting for the deregulation of the sector for years," said Tunji Oyebanji, president of the Fuel Distributors Association of Nigeria.

It ensures that the interplay of supply and demand, as well as fair competition on the market will ultimately 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 said.

© 2020 AFP