Toba Owojaiye reporting
Abuja, Nigeria
The National Bureau of Statistics (NBS) has revealed a significant decrease in Nigeria’s petrol imports, attributed to the removal of the fuel subsidy in May 2023 by President Bola Tinubu.
According to facts gotten by Truth Live News from the NBS, petrol imports dropped by 3.58 billion litres during the second half of 2023, a reduction of 29.99% compared to the first half of the year. This decline reflects a broader annual drop in petrol imports, which fell from 23.54 billion litres in 2022 to 20.30 billion litres in 2023 – a 13.77% year-on-year decrease.
A detailed breakdown shows that imports fluctuated monthly, with significant drops following the subsidy removal. For instance, petrol imports stood at 2.09 billion litres in January 2023 but fell to just 1.09 billion litres by August. These figures underscore the profound effect the subsidy removal had on Nigeria’s fuel importation patterns.
Notably, while petrol imports decreased, diesel imports rose by 23.66%, from four billion litres in 2022 to 4.94 billion litres in 2023. Similarly, local production of household kerosene and diesel increased, highlighting a shift in fuel consumption and production dynamics post-subsidy removal.
The removal of the fuel subsidy, announced by President Tinubu upon assuming office in May 2023, led to a sharp increase in fuel prices, with some stations selling petrol at over N700 per litre. This price hike, coupled with the weakened naira and high crude oil prices, caused Nigeria’s fuel import costs to increase significantly, especially in the first half of 2024.
The government has defended the subsidy removal, stating that funds saved would be redirected to essential services like healthcare, education, and infrastructure. However, the policy has sparked widespread criticism, particularly from economists who argue that it disproportionately impacts lower-income Nigerians. Many Nigerians have also expressed concerns over the rising cost of living since the subsidy removal.
There remains ongoing controversy over whether the subsidy has been entirely removed. Reports suggest that the Nigerian National Petroleum Company (NNPC) may still be incurring fuel import costs, despite the government’s claims. The situation escalated when it was revealed that the NNPC sought financial support from the government for these costs.
**Summary:**
Nigeria’s fuel importation has significantly dropped since the removal of the fuel subsidy, with petrol imports falling by 3.58 billion litres in the second half of 2023. This decline is part of a broader trend, with annual petrol imports down by 13.77% in 2023 compared to 2022. While the government argues that the subsidy removal will free up resources for essential services, the policy has led to higher fuel prices and increased living costs, sparking public discontent. There is also ongoing debate about whether the subsidy has been fully removed, as the NNPC continues to face fuel import costs. Public sentiment is likely to remain divided, as the financial strain on households grows.