THE roadsides of West African nations have been thrown into disarray as the price of cheap contraband petrol from Nigeria suddenly doubled, causing upheaval in a vital informal sector that drives the region’s economic activity.
Following Nigeria’s decision to eliminate the state fuel subsidy on May 31, black market fuel vendors and commercial drivers in Cameroon, Benin, and Togo, who heavily relied on smuggled petrol from Nigeria, have experienced the collapse o
f their businesses.
As supplies dwindle, long queues have formed at official petrol stations, where fuel is now sold at competitive prices. In Garoua, a town in northwest Cameroon near the Nigerian border, black market petrol, which used to sell for about CFA300 ($0.48) per litre, now demands a minimum of CFA600, according to vendors.
‘Supply has become scarce, and customers think we are overcharging them with these high prices, yet it is Nigeria where the prices have soared,’ lamented Perevet Dieudonne, a black market seller.
The repercussions of this fuel price hike extend to motorcycle-taxis, a prevalent form of public transport in West Africa, where conflict has arisen between riders struggling
to make ends meet and customers demanding cheap fares regardless of the circumstances.
Ousmanou Mal Djoulde, a motorcycle-taxi rider in Garo
ua, shared that he has been compelled to more than double his fares. However, many customers refuse to pay, leading to agonizingly slow business for the riders.
The trade in black market fuel holds such significance in the local economy that authorities either turn a blind eye or are complicit. In Garoua, a Reuters reporter witnessed a Cameroonian customs officer sitting on a motorcycle-taxi being refuelled with smuggled Nigerian petrol.
Smuggling continues to thrive, with no reliable data available on the exact amount of fuel being illegally transported from Nigeria. The Nigerian National Petroleum Corporation (NNPC), the sole supplier, disclosed that 66 million litres of petrol leave its depots daily, but the exact local consumption remains uncertain, although smuggling is acknowledged as rampant.
Energy experts and Nigeria’s Dangote Petroleum Refinery, set to commence petrol production in early August to alleviate chronic fuel shortages, estimate Nigeria’s total daily consumption to be below 40 million litres.
In neighbouring Benin and Togo, two small nations west of Nigeria, vendors of contraband fuel have suffered losses in supplies and customers, while formerly quiet official petrol stations are now bustling with activity.
At the Hilacondji border crossing between Togo and Benin, some black market fuel stalls have closed, leaving vendors waiting among rows of empty plastic jerrycans for potential deliveries.
‘While we wait for the situation to improve, some have turned to fishing or other small businesses,’ said Ayi Hilla, who had relied on selling contraband fuel for a decade but has now shifted focus to operating a small roadside bar.
Informal fuel depots are being demolished, leaving previously employed individuals who unloaded and carried petrol without jobs.
With more than 80 percent of employment in Africa being informal, according to the UN, the informal sector serves as a crucial driver of economic activity. However, in Cotonou, the commercial capital of Benin, located about 60km from Nigeria, long queues have formed at official petrol stations, some of which struggle
to meet the sudden surge in demand, especially from zemidjan, the local term for motorcycle-taxis.
‘Previously, we sold about 2,000 litres per day, but now we are selling up to 7,000 litres per day,’ revealed Janvier, an employee at the JNP fuel station who witnessed turning away four customers due to depleted supplies.
‘The zemidjan-men are even fighting to be served,’ Janvier added, highlighting the escalating tensions caused by the fuel shortage.
(with Reuters)
