Agreement reached to end fuel crisis

AGREEMENT was reached late yesterday to end a crippling fuel crisis in Nigeria that had left the country at a virtual standstill just days before a new government is installed.

Banks had begun to close early and telecoms firms warned their mobile phone networks could be shut down because of fuel shortages‚ which left domestic airlines grounded and saw petrol stations run dry.

But an end to the crisis was reached after the main unions and industrial groups respon- sible for supplying and distributing the majority of petrol and diesel in Nigeria met the government for talks.

Earlier in the day Africa’s largest telecoms operator‚ MTN‚ said that fuel shortages in Nigeria‚ its biggest market‚ were disrupting its services.

“Some of our customers are feeling the impact‚” Funmilayo Onajide‚ a spokeswoman for the South Africa-based company‚ said.

Guaranty Trust Bank‚ Nigeria’s biggest lender‚ closed its offices at 1pm yesterday because of the shortages‚ while Arik Air‚ the country’s biggest carrier‚ had cut two-thirds of its 120 daily flights.

Bharti Airtel’s local unit told its customers on Sunday to expect “some strain” on its services due to fuel difficulties‚ while Uber Technologies said its Lagos services were facing longer wait times due to non-availability of petrol.

Nigeria depends on fuel imports to meet more than 70% of its domestic needs and pays importers to guarantee cheaper local prices.

Major oil marketing companies say they are still owed about R12-billion in outstanding payments by the outgoing government of President Goodluck Jonathan.

A finance ministry spokesman said they wanted the claims verified “but the marketers are kicking against this and saying they must be paid or they won’t supply”.

President-elect Muhammadu Buhari will take over from Jonathan on May 29‚ causing anxiety among creditors that the new government may take longer to pay the claims. – Bloomberg, Reuters