Nigeria has recorded a reduction in petrol importation following the ‘removal of fuel subsidy’ by President Bola Tinubu in May 2023.
According to the latest petroleum products distribution statistics report of the National Bureau of Statistics (NBS), petrol imports dropped by 3.58 billion litres in the second half of 2023 compared to the first half of the year.
The country imported 8.36 billion litres of Premium Motor Spirit (PMS) in H2 2023, a significant decrease from the 11.94 billion litres imported in H1 2023, marking a 29.99% reduction.
This downward trend is even more notable when compared to H2 2022. In the latter half of 2022, petrol imports stood at 11.98 billion litres, resulting in a 30.22% drop when compared to H2 2023, which is equivalent to a reduction of 3.62 billion litres.
Also, for the entire year of 2023, Nigeria imported 20.30 billion litres of Premium Motor Spirit (PMS), which is a decrease from the 23.54 billion litres imported in 2022. This reflects a reduction of approximately 13.77% year-on-year.
These figures highlight the profound impact of the subsidy removal on the volume of petrol imported into the country.
The announcement of the fuel subsidy removal was made on May 29, 2023, during President Tinubu’s inauguration speech. Shortly after, fuel prices soared across Nigeria, with some stations selling PMS at prices as high as N700 per litre .
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According to the 2023 full-year foreign trade data, Nigeria’s fuel import costs decreased by approximately 2.6%, from N7.7 trillion in 2022 to N7.5 trillion in 2023. In terms of semi-annual comparison, the country incurred N3.5 trillion in fuel importation costs in the second half of 2023, representing a 10.26% decrease compared to the N3.9 trillion recorded in the first half of the year.
Also, in the first six months of 2024, the country’s petrol import bill stood at N5.8 trillion. When compared to the same period of 2023, the country’s petrol import bill increased by 87.09% from N3.1 trillion. The significant increase in petrol imports can be attributed to high crude oil prices coupled with a weakened naira.
The Minister of Information, Idris Mohammed, earlier said that Nigeria’s domestic consumption dropped from 2 billion of petrol by 50% following the removal of fuel subsidy.
Mohammed said that the decline in importation suggests that these imports are being redirected to destinations other than Nigeria.
Nairametrics.com
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