The National Bureau of Statistics has reported a notable decline in Nigeria’s petrol importation since President Bola Tinubu’s removal of the fuel subsidy in May 2023.
According to the latest petroleum products distribution statistics, total fuel imports decreased to 20.30 billion litres in 2023, down from 23.54 billion litres in 2022 a reduction of 13.77% year-on-year.
In the second half of 2023, petrol imports fell significantly, dropping by 3.58 billion litres compared to the first half.
The country imported 8.36 billion litres of Premium Motor Spirit (petrol) in the latter half, marking a sharp 29.99% decrease from the 11.94 billion litres imported in the first half of the year.
The Bureau’s data also indicated that the total truck-out volume of petrol stood at 20.22 billion litres in 2023, reflecting a 16.96% decrease from 24.35 billion litres in 2022. Additionally, petrol imports in the second half of 2023 were 30.22% lower than the same period in 2022.
Monthly fuel import figures showed fluctuations throughout the year, peaking at 2.29 billion litres in March and hitting a low of 1.09 billion litres in August. The statistics demonstrate a clear impact of the subsidy removal on petrol import volumes.
On the diesel front, the volume of Automotive Gas Oil (AGO) imported into Nigeria rose to 4.94 billion litres in 2023, up from four billion litres in 2022. Local production of AGO increased slightly to 109.39 million litres, alongside a significant rise in household kerosene production, which jumped by 56.02% to 69.71 million litres.
Following the subsidy removal, fuel prices surged, with some stations selling petrol for as much as N700 per litre. The country’s spending on fuel imports also decreased by approximately 2.6%, from N7.7 trillion in 2022 to N7.5 trillion in 2023. However, the import bill for the first half of 2024 soared to N5.8 trillion, an 87.09% increase from the same period in 2023, attributed to high crude oil prices and a weakened naira.
Minister of Information Idris Mohammed noted that domestic consumption dropped by 50% post-subsidy removal, suggesting that imports might be redirected elsewhere.
The subsidy removal remains controversial, as the government argues it reallocates resources to vital sectors like healthcare and education, while critics point to the rising living costs for lower-income Nigerians.
Concerns continue regarding the actual implementation of the subsidy removal, with reports indicating that the Nigerian National Petroleum Company Limited (NNPC) is still seeking financial assistance for fuel import costs despite the stated elimination of the subsidy
