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Fuel Subsidy Removal | Zikoko!
  • Talk True: Are Cooking-Gas-Powered Generators Safe?

    Talk True is a Zikoko limited series for medical myth-busting. For this special episode, we’re considering the safety of the newest invention in Nigeria since the fuel subsidy removal: cooking-gas-powered generators


    In his inaugural speech on May 29, 2023, President Bola Tinubu bluntly announced plans to remove fuel subsidy which would inevitably result in the increase of fuel pump prices.

    As if we didn’t have enough problems

    What followed was acute fuel scarcity nationwide, panic-buying and an eventual increase to over ₦500 per litre in June. Fuel prices have risen AGAIN in July to over ₦600 per litre. One way Nigerians are dealing with the new cost is by reducing dependence on fuel, a situation which birthed the conversion of fuel-powered generators to gas-powered ones.

    Some users claim these generators are more economical, but is it really safe for use? Kay Oyewole, a safety professional, provides answers.

    How is the conversion from fuel to gas possible?

    “Petrol generators may be the right term for what we commonly use in Nigeria. Generators generally have a system that allows them to burn fuel to generate usable electricity. ‘Fuel’ in this situation can be petroleum, natural gas (methane), or the one typically used for cooking: Liquefied Petroleum Gas (LPG)”, Kay says.

    It’s not a complicated process to convert a petrol generator to one that runs on cooking gas. In fact, the only change required is the generator’s carburettor.

    “Using a gas carburettor does the trick. Some may decide to change it entirely to gas, while others use a converter that allows you to switch from fuel to gas.”

    Is it safe to use?

    Kay confirms that gas-powered generators are safe to use but emphasises the need to observe all safety precautions.

    “Make sure that any alterations are made by qualified technicians, rather than just anyone claiming to know how to do it. Users also need to properly maintain the gas cylinder just as they would the ones used for cooking. 

    It’s important to test the gas cylinders every five years for usability, replace the accessories (like valves, hose, regulators and clips) every 2-3 years and watch for leaks. If there are no gas leaks, the converted gas generators are absolutely safe.”

    Feel free to carry go

    But is it actually economical?

    Even though the price of cooking gas dropped recently, the difference may not be significant. Kay doesn’t feel optimistic about whether the use of gas for fueling generators will be cheaper than fuel in the long run.

    “It may turn out to be cheaper, considering the recent fuel prices, but it might not be a significant amount. I’ve seen people claim gas-powered generators last longer for fewer kilograms of LPG, but it also depends on individual use. More research needs to be done on that. But of course, if there’s even a small chance of saving money, especially with how inflation is these days, it’s a welcome option.

    Anything to save the coins

    In terms of environmental friendliness, though, LPG is a better fossil fuel than petrol because of its reduced emissions and lower levels of nitrogen oxides.” Kay notes.

    The takeaway

    Cooking-gas-powered generators are safe to use as long as a qualified technician has modified them properly and ensured that there are no gas leaks. As to whether they’re cheaper than using petrol, the jury’s still out.


    NEXT READ: Talk True: Does Eating Beans Actually Make You Tall?

  • Navigating Nigeria: How Nigerians Are Adapting to Fuel Subsidy Removal

    There’s a common saying that “tough times don’t last.” Nigerians from all walks of life will hope this saying manifests quickly, and why wouldn’t they? The new administration, led by President Tinubu, heralded its dispensation by removing the fuel subsidy

    The effect has been a marked increase in fuel costs, which has had ripple effects on the cost of living. On Thursday, June 15, the National Bureau of Statistics (NBS) announced that inflation in May rose to 22.41%. The subsidy removal and the subsequent announcement of a unified exchange rate have led experts to suggest that inflation will rise even higher in June.

    To gauge the current adaptation of Nigerians to the prevailing circumstances,  Citizen interviewed some of them for this week’s episode of Navigating Nigeria. Here are their thoughts: 

    Ola, Analyst at a VC firm

    I’m a naturally frugal person who works on a budget. Because I follow the news, I saw the fuel subsidy removal coming, and I understood its implications. I got a solar inverter in May, which powers electronics like my TV, refrigerator, and laptop. I charge the inverter with PHCN’s power supply and switch to it when the power goes off. I did this because I didn’t want to find myself in a situation where I’d have to queue to get fuel for my generator. I’m also a remote worker who has to be online almost 24/7. 

    Getting a solar inverter has been one of the best cost-saving measures I’ve done this year. I don’t have a car, so I don’t have to worry about getting fuel for that because I rarely ever go out except for groceries. Speaking of that, I do my shopping in bulk, so there’s no need to visit the mall frequently. My data subscription plan is also in bulk; I pay a yearly data subscription of ₦100k on MTN that gives me one terabyte covering my internet needs.

    I don’t eat out either; I make my meals. This one isn’t because of the subsidy removal. I’ve always been like that. It saves cost.

    Another way I’ve adapted is to reduce my propensity to order stuff from online vendors. The other day I wanted to get stuff from Instagram, and the vendor told me it cost ₦‎2800, which was fine. Then I asked for the delivery cost, and she told me it was ₦2200. She told me the high delivery cost was because of the subsidy. I backed out because it made no sense to me. So yeah, these are the measures I’ve taken to readjust to life after the government removed the subsidy.

    Itome, Business Analyst

    For me, there are some essentials I can’t do without. Data is one of them, and that’s a non-negotiable, and I always make provision for that

    Because my cost of living has increased, I go out only when necessary. I only use Bolt for significant outings. I take public transport most of the time.

    To manage fuel, I turn on my generator when I need to charge my laptop and turn it off once my gadgets are fully charged. That’s how I’ve been managing.

    Juliet, Banker

    Cooking your food saves a lot. It’s much cheaper to cook at home and take your food to work than to buy food regularly. Imagine if my hubby and I buy food at work every day, plus our children. It would be very expensive. I also buy non-perishable food items in bulk.

    Ilamosi, Sales Manager

    Going out is the only thing I’ve cut down on. I barely go out now. Before the fuel subsidy removal, I’d be outside and come to work frequently. But now, with the hike in cab prices, it’s hard to leave my house. I’m now an introvert.

    The cost of living has turned me into a home buddy. I’ve even reduced the way I order food. Usually, you’d find me on Chowdeck. Now? I cook. Dem no dey tell person twice.

    Eloho, General Contractor

    Regarding data, I use Fibre One wifi. It’s still cheap at the moment. For food, I made some bulk purchases before the inflation kicked in. I’ve not made any significant purchases afterwards.

    Transportation is one area I’ve felt the pinch. Prices just dey surprise me every time. I use buses more than before to cope and only use Uber when necessary. I’m no longer shy of asking for Uber fare if my stepping out is doing someone a favour. I calculate in advance to reduce unnecessary trips

    Regarding electricity, yesterday was the longest we ever ran my generator, which was babe-motivated. (Not my babe o, my brother’s babe). So far, our devices are charged, and we don’t run the generator like before. Before now, we’d put on the generator at the slightest inconvenience of heat. I go to places with better electricity to work instead of burning fuel.  

    Generally, I now think more business-wise, figuring out how every relationship can become financially beneficial to everyone. I make myself more available and render help to anyone

    On a personal note, knowing the principle of giving makes giving more conscious. I budget a little daily, as much as possible, and look for the needy. It’s not just because of love but as part of my financial strategy because by giving, you receive more (not from the person you gave to, lol).

    Shola, Oil and Gas Worker

    I didn’t care about the fuel price until the subsidy removal. Now, I don’t buy full-tank like before. I only buy enough for the week. It cost about ₦32k to fill my car’s tank. So, these days, I just buy half, roughly ₦15k. 

    I don’t do long-distance drives, only making exceptions like going to my friend’s wedding or linking up with my babe. I had a chef that came in once a week but stopped her for a while. But eating out is biting, so I had to bring her back again at a higher rate. I’m now in between a rock and a hard place. I increased my housekeeper’s pay and slightly increased transfer payments to dependents.

    My last movie dates were on the mainland, compared to my usual Ebony and IMAX at Lekki on the island. It’s cheaper, but my babe isn’t feeling this mainland level. It’s still the same film they’ll show us on the island or on the mainland.

    Niyi, Corporate Trainer

    I’ve stopped going anywhere. Fuel to fill my car’s tank is now about ₦37,000, up from ₦14,000. So I only go out when I absolutely have to go out. 

    I’m also investing in more solar generation. The inverter I own relies on fuel and electricity to charge the batteries. More investment has gone towards increasing the number of solar panels to avoid relying on generators. It’s become unsustainable to use generators.

    I also had to bring forward some purchases before the prices inevitably go up. 

    Essentially, I’ve done a lot to reduce reliance on fuel because it’s become too expensive to maintain the lifestyle I was living in, pre-subsidy removal.

    William, Lawyer

    I’ve been in Abuja for the last few months, and it’s considerably different from living in Lagos. In Lagos, you at least have alternate transport like bikes. Here, outings are either via Bolt or a cab. Their cabs are arranged in a way that five people can sit in them. There are no bikes or buses here.

    For the cabs, the price of transport has doubled. What cost about ₦1000 before now goes for ₦1800. I now go to court less than before. I also cut costs by moving in groups so that my colleagues and I can split the bill.

    Personally, food prices haven’t increased. I still buy things at relatively the same price as before the subsidy removal. In Abuja, we don’t worry much about electricity. I think ours is way better than Lagos’s. On average, we get around 18 hours of consecutive power supply daily. On some days, it could be as high as 23 hours. That means you don’t have to worry much about fuel for your generator. You also don’t need to worry about wasting electricity to pump water, as ours is pipe-borne. The government supplies water, which is fascinating and different from Lagos, where everyone drills boreholes to get water. Abuja is giving American vibes.

    Prices of other things may still go up over time, but for now, transport is the only area where I’m feeling the pinch.

    Download the Citizen Election Report: Navigating Nigeria’s Political Journey

  • Interview With Fuel: Help Me, I’m a Victim Too

    Zikoko walks into a filling station. After struggling through the horde of people and sustaining scratches, they make their way into a dark office building.

    Unknown voice: psstt 

    [Zikoko looks around, searching for the source of the sound]

    Unknown voice: psstt psstt 

    [Zikoko squints in the dark then reaches for the light switch]

    Unknown voice: Don’t turn it on.

    [Then, Zikoko sniffs]

    Zikoko: Fuel? Is that you? Thank you so much for agreeing to this. I’m so honoured to meet you. Everyone is looking for you right now.

    Fuel: Shhhh.

    Zikoko: *whispers* What? What is it?

    Fuel: They’re after me.

    Zikoko: Who?

    [Fuel points outside]

    Zikoko: Oh yeah. They just want to make sure you’re available.

    Fuel: They want to use me.

    Zikoko: Well, that’s what you’re here for, isn’t it?

    Fuel:

    Zikoko: I mean, it’s not like they’re asking for much. They just want something light. You know you’re what keeps them going. 

    Fuel: Whose side are you on?

    Zikoko: Hmm?

    Fuel: Are you working for them too?

    Zikoko: Working for who? Relax. You called for this interview, remember?

    Fuel: Yes, that’s right.

     [Starts sobbing]

    I’m sorry. I just haven’t been the same. 

    Zikoko: Don’t… don’t cry too much. You’ll ruin yourself.

    Fuel: I’m already ruined. They’ve done things to me. Bad things.

    Zikoko: Who? 

    Fuel: Everybody. The government has taken my allowance, and the filling station locked me inside a hole. I escaped, and nobody wants to help me.

    Zikoko: Wow, so sad

    Fuel: Did I tell you I’m finished?  

    Zikoko: And yet, here you are.

    [He takes a deep breath.] 

    Nobody wants to help me. The people saw me outside and started chasing me. One group called the “black marketers” caught me and poured kerosene inside me. Me! They mixed me with kerosene!

    Zikoko: Shhhh. They will hear you ooo.

    Fuel: [Swallows his tears]

    Zikoko: So the filling station locked you up.

    Fuel:

    Yes.

    Zikoko: You now decided to come and hide inside its house.

    Fuel: It’s harder to find something if it’s under your nose you this small child.

    I just want you to help me tell the people we’re on the same side. They should stop chasing me whenever they see me. I’m a victim too.

    Zikoko: [Takes notes] 

    Sorry, but this isn’t the first time something like this has happened, so why do you want to make a statement now? What’s different?

    Also, do Diesel and Kerosene share your sentiments? Do you even know them?

    Fuel:

    Yes, I know them. I’m just tired, please. Diesel and kerosene don’t go through half the things I go through. Only me, I’ll power gen, I’ll power car, most sought after, but they want to tear my clothe. I’m not doing again. I’m tired.

    Zikoko: [writes] okay. Fuel is tired. Is there anything else…

    [Zikoko’s phone beeps as a voice note comes in]

    BCM: We just heard your interview is at a filling station. The fuel in the office has finished…

    [Zikoko looks at Fuel]

    BCM: You need to bring some fuel with you when you’re coming back. It’s very important.

    [Fuel crawls off the floor as the voice note ends]

    Zikoko: Can I get…

    [Fuel jumps through the window before Zikoko can finish their sentence]

    [Zikoko follows after him]

    Zikoko: Please, we just want small.

  • How Has the Fuel Price Hike Affected Transportation Costs in Major Cities?

    Following newly inaugurated President Bola Tinubu’s (in)famous “subsidy is gone” declaration on May 29, 2023, Nigerians have been thrown into yet another cycle of fuel scarcity. But this time, it’s come with an almost doubled cost of fuel

    As expected, this has resulted in an increase in the cost of transportation and unusually empty roads, as many transport operators are either on the hunt for fuel, or simply parked their vehicles at home due to an inability to afford the new prices. 

    We talked to seven young Nigerians in different Nigerian cities, and they shared how the subsidy removal has affected their transportation budgets and overall quality of life.

    “My transport spend will go from ₦5k/month to about ₦22k/month” — Mercy, 29. Kaduna

    I use buses and keke napeps a lot because those are the easiest forms of transportation in Kaduna. I work five days a week, and I move around during the weekend too. I don’t have a car,  so you’ll most likely see me in a keke.

    Before the new fuel prices came into effect, my daily commute to work was ₦500: my house to the bus stop was ₦50, and then I’d take another keke and bike to get to my office, which cost ₦100 each—making ₦250 in the morning, and same amount when returning home.

    Now, the keke from my house to the bus stop costs ₦100, and the other two stops now cost ₦200 and ₦150 respectively. I now spend ₦900 in transportation costs on a good day. It sometimes gets higher. 

    Apart from the increase, it’s now difficult for people to get buses. It’s easier for me because I live close to the junction, and I only have to be at work by 10 or 11 a.m. Kaduna is a typically busy city, but now the cars on the road are scanty, and people who have to be at work by 8 a.m. have a really difficult time.

    This whole thing has changed my plans. I typically spend ₦5k on transport in a month, but now, this number will go up to roughly ₦20k-₦22k in a month. What will I now be eating? I need a raise or I’m die.

    “I paid ₦1k for a fare that usually costs ₦300” — Ebube, 26. Lagos (Public transport user)

    I often use public transport because I have to report physically to the office. My regular route is Iyana Oworo to Ikoyi, which is approximately a 45-minute journey on a good Lagos traffic day. On bad days, the sky is the limit.

    It typically costs me ₦300 to go in the morning and ₦400 to return home, making ₦700 in total. It may even be ₦800 at times. However, since Monday, the price has been all over the place. On Tuesday, I spent ₦400 in the morning; on Wednesday, it was ₦1k and on Thursday, it was ₦500. Luckily for me, my colleague — whose fuel God has to keep replenishing —has been dropping me at home in the evenings.

    The price increase isn’t even the only thing; it’s now a struggle to get one of the few buses available. I just want to be a soft girl, but imagine me, a whole lawyer trekking under Lagos sun and behaving like a conductor. My productivity is hanging by a thread because I’m less motivated to work. Also, I’m a lot more irritable these days, and I hate how it’s turning me into a nag. I just hope my colleagues understand.

    “I had to pay ₦13k for a ride that should’ve cost ₦7k— Busayo, 28. Lagos (Private ride-hailing app user)

    I don’t have a car, and I don’t use public transport, so I pretty much go everywhere with an Uber or Bolt.

    I do hospital trips from Ipaja to Lekki at least twice a month. Before the price hike, it typically costs ₦7k for this distance. If I was going to Surulere, it’d cost around ₦4k.

    On Thursday, I did ₦13k to Lekki, and that was the best price. It wasn’t difficult to get a ride, but the first driver the app matched me with was trying to charge more. Uber suggested ₦8,800, but the driver and I did a 20-minute negotiation chat where he insisted he couldn’t go at that price and asked to be paid double whatever the price came to at my destination. That would’ve been around ₦18k or more. I eventually found a Bolt driver who didn’t haggle and drove me at the price Bolt suggested.

    The inconvenience is just the additional cost for now, but I suspect there’ll be a real problem when my generator runs out of fuel.


    RELATED: Fuel Subsidy: Tinubu Went off Script, and Nigerians Are Facing the Brunt


    “I’ve spent half my usual weekly transportation budget in two days” — Nnenna, 26. Abuja

    I stay at Kubwa and work at Maitama — a 30-40 minute cab ride — which costs about ₦400 in the morning, and ₦600 in the evening, totalling ₦1k. Now, I spend ₦700 in the morning and between ₦950-₦1k when I’m returning home. That’s about  ₦1,700 in one day. It’s crazy. My transport budget was ₦10k weekly — including the occasional cost of food at work —but I’ve already spent ₦5k in two days.

    Even with the increased cost, getting cabs in the morning is difficult. Most drivers have parked their cars at home, and the road is so free in the mornings now, though the usual evening traffic is still the same. The few drivers available are aggressive. At least, it’s just transport costs affected at the moment. I use a solar panel at home, so I don’t have to worry about fuel to power a generator. It’s saved me a lot.

    “Short distances are now almost double the price” — Queeneth, 25. Port Harcourt

    I use public transport when I have errands to run, and ride-hailing apps like Bolt when I go out to chill or visit someone. Since subsidy removal, I’ve used public transport a few times, and Bolt once.

    After the first fuel price increase earlier this year, kekes went from ₦50 to ₦100 for short distances. Now, it’s been increased to ₦150-₦200. A two-minute ride from one junction to the next is still ₦150 or ₦200, and it’s the same price if you drop at the last bus stop. It’s the same with buses and local taxis. They’ve all added around ₦100 or ₦200 to the base fare.

    The Bolt I took on Tuesday also charged ₦1,300 for a 7-minute ride that cost ₦700 before subsidy removal. It seems that’s the new base price because I just checked the app for another close-by location, and the fare was also ₦1,300.

    The only way this situation has helped is that there’s barely any traffic on the road. My junction is typically filled with vehicles, but now there’s no one there. However, it also means you have to wait for about eight minutes before you find a vehicle, and most are already filled up. Some drivers have also stopped working, or are in queues somewhere looking for fuel. Even fuel stations don’t want to sell fuel. Thankfully, NEPA is pretty stable here, so I don’t buy fuel.

    “Okada fares have increased by 100%” — Dare, 22. Ado-Ekiti

    Everyone who doesn’t have a car in Ado has to use okadas. There are no two ways about it. The small buses are usually for long distances and don’t enter the streets. I go out every day for work, and since the Monday announcement, it’s been tough.

    Before, I could easily find okadas when I walked to my junction, but now I have to wait a while or even trek. The few ones available charge 100% more, and it’s honestly not their fault. Fuel is now ₦500 per litre here. The fuel station queues are so long that you’ll see people lining up five minutes before you even get to the fuel station. 

    I only turn on my generator once a day now, and only when absolutely necessary, because even if I can afford the new price, it’ll probably take me hours to even buy it.

    It’s just a matter of time before food prices will follow suit. I’m tired and frustrated. It’s always one thing in this country. Just a few weeks ago, it was cash scarcity, now this. I’m fed up, and I know I didn’t vote for this.

    “I now rely on okada” — Tayo, 25, Ibadan

    I work remotely, and only leave home when I have an outing. When I do go out, I use Uber. But since subsidy removal, I now rely on okadas. Two days ago, I tried to order an Uber. The app said ₦1,500, but the driver said he wouldn’t go unless I paid him ₦3k. I just gently cancelled it and went to look for okada. Even the okadas have increased by around ₦100 or ₦20, depending on the distance.

    The major downside for me is fueling my generator because I’ll always need it to work. On Tuesday, I purchased 16 litres of fuel for ₦16k, and my chest is still paining me.


    NEXT READ: To Japa or Not to Japa? Seven Over-30 Nigerians Reflect on Their Choices

  • Nigeria Will Remove Fuel Subsidy in 2023. What Will Change?

    On January 5, 2023, the Minister of Finance, Budget, and National Planning, Zainab Ahmed, reminded Nigerians of one of the biggest developments to expect in 2023. This is the removal of fuel subsidy after June. 

    For now, all that Nigeria has budgeted for fuel subsidy until June is ₦‎3.36 trillion. This is only for the first six months of 2023.

    Why is fuel subsidy being removed?

    According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), (an organisation that deals with the transportation, storage, and conversion of crude oil and natural gas), the current fuel subsidy regime is not sustainable. This is mostly due to the 66 million litres of Premium Motor Spirit (PMS) constantly being consumed by Nigerians. Not to mention the crazy amount of money being spent on maintaining the fuel subsidy.

    The present Buhari regime has already spent up to ₦‎7.3 trillion on fuel subsidy. This was since he came into office in 2023. In August 2022, Ahmed also declared that Nigeria spends nothing less than ₦‎18.4 billion on petrol subsidy daily. Nigeria already has a ₦77 trillion debt. The fuel subsidy removal may possibly be what Nigeria needs to come out of its unending poverty. 

    But is fuel subsidy a good or bad thing for Nigerians?

    Currently, Nigerians are paying an average price of ₦‎200/litre on fuel because of fuel subsidy. But how does the fuel subsidy work?

    A fuel subsidy is simply the difference between the fuel price paid by the consumer and the cost of fuel supply.

    Currently, the Federal Government pays ₦448/litre for the landing cost of petroleum. This is a cost that is acquired from refining our petroleum products abroad instead of just fixing our local refineries. 

    Because the Federal Government takes up this landing cost for citizens, we get to enjoy a total of ₦248 discount on every litre of fuel they purchase from the original price.

    So what’s wrong with the fuel subsidy plan?

    The fuel subsidy plan hasn’t been so smooth. This is due to the official statistic of 66 million litres of fuel being consumed as earlier mentioned. 

    This data in recent times has been largely criticised by several individuals and organizations. This includes the International Monetary Fund (IMF), and former Central Bank Governor, Sanusi Lamido Sanusi amongst many others who believe that Nigerians consume way less fuel than the official figures. They have asked the Nigerian National Petroleum Corporation (NNPC) to produce a proper financial audit backing their claims. 

    Fuel subsidy removal: to be or not to be? 

    After all the fighting and debate about our fuel consumption, the question remains — should this fuel subsidy be removed or not? 

    If the Federal Government should continue paying the fuel subsidy, we are more likely to run into more debt as a country. It is also a big drain on Nigeria’s revenue

    If it is removed without alternatives being put in place (such as local oil refineries), it would affect the lives of Nigerians. This is in terms of higher transportation fees, increased inflation rates, and ultimately the increase of ‘sapa’ or poverty rates.  

    Dear Nigerians, which of these would you say is the better poison?