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Economic Brief - Reforming the Energy Sector in Africa: the Case Study of Nigeria
Many African countries are deregulating their energy sector and this often leads to increases in retail fuel prices. Following this trend, in January 2012 Nigeria abruptly eliminated fuel subsidies and this caused a spike in fuel prices from N65 (US$ 0.42) to N138 (US$ 0.89) per liter, the highest single jump in the country’s history. The sudden increase triggered eight days of national strikes that was supported by a wide range of civil society organizations, including the Nigerian Labour Congress (NLC), Trade Union Congress (TUC), Nigeria Bar Association and Committee for Defense of Human Rights. After negotiations with civil society organizations, the Nigerian Government agreed to reduce the fuel price to N97 (US$.063) per liter.