Nigeria’s crippling gas crisis resolved

JOHANNESBURG – Nigeria’s gasoline scarcity was resolved Monday, but only after the shortages had damaged the economy, canceled or diverted commercial flights, shut down radio stations and put mobile phone networks at risk.

With incoming President Muhammadu Buhari to be sworn in Friday, the opposition All Progressives Congress accused outgoing President Goodluck Jonathan of sabotaging the new administration.

Buhari faces high expectations and many problems, including a government financial crisis partly caused by the fall in oil prices, a battle against the militant group Boko Haram in the country’s northeast, electricity outages, widespread corruption and poor infrastructure.

The gasoline shortage began before the March election in which Jonathan lost his bid for re-election. However, it worsened recently when importers refused to distribute supplies, claiming the government owed them $1 billion in subsidy payments. Related unions, including tanker drivers, also went on strike, deepening the problem.

In Nigeria, the government keeps gasoline prices low for consumers by paying subsidies to companies that import and market fuel.

The Major Oil Marketers Association of Nigeria and distributors of gasoline agreed to resume deliveries Monday after a meeting at the nation’s Senate.

Electricity shortages in Nigeria are common, but the gasoline shortages have meant that householders and businesses have not been able to run the home generators commonly used to power computers, home appliances, lights and other systems.

Hospitals, small businesses and bus companies were hit hard. Banks were forced to close early, domestic flights were canceled and international flights were diverted. Mobile phone networks warned over the weekend that their services would be affected unless a solution was found because of a lack of diesel to run their systems.

The political opposition, which will take office with Buhari, says the government has $60 billion in debt.

Nigeria is one of the continent’s biggest oil exporters, producing 2 million barrels of oil a day, but it lacks refineries and is forced to import most of its gasoline. Subsidies cost the government about $2.6 billion a year, but Jonathan’s attempt to remove the subsidy in 2012 triggered mass protests and he backed down.