Nigeria faces gasoline scarcity due to plummeting currency, Reuters says

Residents of the main cities of Nigeria were on March 3 suffering gasoline shortages as a consequence in part of weakening local currency vs. the US dollar, Reuters reported.

There were “queues of double parked cars” in all gasoline stations in Abuja while other drivers have resorted to the black market while many others, including taxi drivers, simply cannot find any fuel to buy, the Reuters correspondent in that city reported.

Nigeria exports around two million barrels per day of crude oil. However, it relies on imports for the 40 million liters per day of gasoline it consumes and which needs to buy with hard currency, Reuters said.

The state oil company has assured that supplies will soon be distributed, the news agency added.

Part of the problem is that fuel prices are heavily subsidized and the government often delays payments to market participants to compensate for the subsidies. The country is facing financial volatility as it will hold presidential elections at the end of the month.