President Olusegun Obasanjo has also ordered any ships found illegally carrying fuel to be sunk. The changes should make it much harder for the state-owned oil company to control the fuel trade, encourage private distributors to set up in Nigeria and finally end the paradox of Africa's greatest oil producer having to import enough fuel for its domestic needs. It is intended to free the sector from bottlenecks and to guarantee enhanced performance. But while the plan makes good economic sense it has run into political problems. Many oppose even the smallest price rise, let alone the near doubling that will likely occur with deregulation.
Food is already very costly.
If they raise fuel prices everything will again double. The inflationary effects will be massive. The Nigeria Labour Council, which represents most of the country's unions, held protests against deregulation last month and promises strikes if the government makes good on its word. If they deregulate, we will deregulate the struggle. The government says it will do a better job selling its fuel policy.