(Image source: euronews)

BY MALLORY PERRYMAN

ANCHOR ANA COMPAIN-ROMERO

A nationwide strike is underway in Nigeria as the price of gas skyrockets-- that’s after the government ended a fuel subsidy that kept petrol prices artificially low. CNN explains what this means for most Nigerians.

“People have to realize that most Nigerians live on less than two dollars a day so when the price of a litre of petrol doubles from about 40 cents a litre to now 86 cents a litre, so that is a real hardship for most people living here.”

Nigerian President Goodluck Jonathan says maintaining the subsidy is too expensive-- and that money could be spent elsewhere. Here’s euronews.

“The government says the policy cost more than six billion euros last year. It insists there will be no U-turn on the move and that the money must be re-invested in the country’s oil refineries. But protesters fear any money saved will simply end up in the pockets of politicians and big business.”

But a reporter for Sky News points out-- whatever Nigeria’s government says it’s going to do with the money-- the people aren’t buying it.

“Nigerians’ faith in government has been eroded by decades of wanton corruption and appalling mismanagement by the politicians elected to serve them. Many regard access to cheap fuel as the one tangible benefit they see from Nigeria’s massive oil wealth, most of which is simply stolen by crooked politicians.”

Nigeria produces millions of barrels of crude oil a day-- but its own refineries are broken-- forcing the nation to import more than 70 percent of the oil it uses. An African journalist writes for BBC News-- the government keeps all information about those imports a secret.

“Only in December did the government raise an alarm that the subsidy on petrol price had quadrupled in the preceding 10 months without evidence of a [corresponding] increase in the petrol imported and distributed.
The conclusion was that a cartel was fraudulently collecting the subsidy - and billions of dollars - for petrol not imported. Labour unions and social activists launched a campaign for government to investigate the scam and prosecute those involved. Nothing was done.”

Finally-- an editorial contributor for Nigeria’s independent newspaper Vanguard argues-- the growing protests are about much more than the price of oil.

“Protests all over the country are against poverty. The new price of petrol gives a platform for the protest...
The uniqueness of Nigerian poverty rests on disjointed policies. Government takes measures with no care about consequences.”

Reuters reports police have shot and killed two protesters and wounded more than two dozen. Organizers for the thousands of demonstrators say they will protest indefinitely.