The sudden doubling of Nigerian illicit petrol prices has upended the informal sector that drives West African economies.
Since Nigeria ended its fuel subsidy on May 31, black market fuel dealers and commercial drivers in Cameroon, Benin, and Togo have collapsed.
With supplies depleting, lineups have formed at official petrol stations, where fuel is now competitively priced.
A liter of black market petrol in Garoua, northwest Cameroon, around 60 km (37 miles) east of the Nigerian border, costs roughly 300 CFA francs ($0.48). Vendors stated the minimum is 600 CFA francs.
“Supply has become scarce and customers think we’re ripping them off with this high price, yet it’s from Nigeria that prices have soared,” claimed black market merchant Perevet Dieudonne.
In West Africa’s ubiquitous motorcycle taxis, riders who typically live hand-to-mouth and consumers who want low fares regularly clash.
Garoua rider Ousmanou Mal Djoulde says he had to quadruple his fares. The business was painfully slow due to clients not paying.
The local economy relies on black market fuel. Thus authorities ignore or participate. A Reuters reporter in Garoua observed a Cameroonian customs officer on a motorcycle-taxi refueling with imported Nigerian petrol.
Nigerian fuel smuggling is unquantified.
Early this month, the president of Nigeria’s state-controlled oil giant NNPC, the sole supplier, said 66 million liters of fuel left its depots daily but could not estimate how much was used locally. He conceded smuggling was common.
Independent energy experts and Nigeria’s Dangote Petroleum Refinery aim to start manufacturing petrol in early August to address persistent fuel shortages.
Contraband fuel dealers in Benin and Togo, small countries west of Nigeria, have lost clients and supplies while legal petrol outlets are suddenly crowded.
At Hilacondji, a border crossing between Togo and Benin, some black market fuel stalls were closed, while others had rows of empty plastic jerricans for supplies.
“While we wait for the situation to improve, some have gone into fishing or other small businesses,” said Ayi Hilla, who sold illicit fuel for ten years but now ran a wayside bar.
Some improvised gasoline depots were removed, leaving those who unloaded and carried petrol unemployed.
According to the UN, more than 80% of African employment is informal, driving economic activity.
Official petrol stations in Cotonou, Benin’s commercial hub 60 km from Nigeria, have been unable to meet demand, especially from “zemidjan” motorcycle taxis.
“Before, we were selling about 2,000 litres per day, but now we’re selling up to 7,000 litres per day,” said JNP fuel station employee Janvier. Four consumers were turned away due to supply shortages.
“The zemidjan-men are even fighting to get served,” observed Janvier.
