Deal Reached To End Fuel Crisis in Nigeria

Nigeria’s fuel wholesalers say they have reached a deal with the government to resume fuel distribution, ending a crisis that brought Nigeria’s economy to a standstill as airlines were forced to ground flights and banks to phone companies faced shutdowns.

The Major Oil Marketers Association of Nigeria (MOMAN) said Monday following a meeting with Nigeria’s finance minister that it will end its campaign of fuel depot closures, AFP reports.

Nigeria’s fuel wholesalers had stopped distributing the commodity, alleging that the government owed them around $2 billion, however government officials had said that the wholesalers had been paid in full.

It was not immediately clear what, if any, deal was offered to help end the stalemate following Monday’s meeting.

The fuel shortage had left domestic airlines grounded and left gas stations across the country dry. The shortage also affected banks and phone companies who rely on a steady supply of diesel to power its generators amid a shortage of public electricity across the country.

The crisis comes to an end just days before the inauguration of the country’s new president, Muhammadu Buhari, on Friday.

Buhari was elected on a platform of tackling widespread corruption and is the first Nigerian opposition candidate to defeat a sitting president.

Nigeria is Africa’s biggest oil producer, however it must import most of its fuel as it has limited functioning refineries. The Nigerian government keeps prices at the pump below market prices and pays the difference in subsidies to importers.