Nigeria settles backlog of forex demand for airlines, fuel

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People in Nigeria have been rushing to buy fuel amid soaring prices since the country's new president, Bola Tinubu, announced the end of subsidies. Nigeria's state oil company says it was spending over 800 million dollars each month on the subsidy.

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Nigerian President Bola Tinubu has defended his decision to stop fuel subsidies after the end of June and asked for patience. This comes at a time when Nigerians are already struggling to cope with record unemployment and poverty and inflation has hit an 18-year high.

Nigeria's President Bola Tinubu has told the country that ending a long-standing fuel subsidy was a painful necessity. But the knock-on effects of the move are having a great impact on Nigerians' everyday lives.

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Nigeria's fuel subsidy kept petrol prices low but also drained billions from government coffers. Now it has been removed, small businesses - which largely rely on generators - are feeling the squeeze.

The removal of fuel subsidy and subsequent increase in fuel price from about NGN180 to NGN500 in June by the current administration hit businesses and individuals across Nigeria in no small measure. But as of today, prices of fuel have taken another drastic increase from NGN500 to over NGN700. Already, NNPC filling stations across the country have adjusted and started dispensing at NGN617.

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