Shock As Nigeria’s Petrol Import Bill Soars By Over 31%, Despite Massive Consumption Drop – NBS Reveals

The New Diplomat
Writer

Ad

UNGA: Shettima to Deliver Nigeria’s National Statement Wednesday

Vice President Kashim Shettima is scheduled to deliver Nigeria’s national statement on Wednesday at the ongoing United Nations General Assembly (UNGA) in New York. He will speak on behalf of President Bola Tinubu between 3:00 p.m. and 9:00 p.m. local time. The News Agency of Nigeria (NAN) reports that Nigeria is expected to unveil its…

Concerns as Four Female LGA Officials Die in Lagos Just Two Months After Inauguration

By Abiola Olawale Concerns have escalated as Lagos State is reeling from the sudden deaths of four prominent female Local Government Area (LGA) officials, all within two months of their swearing-in ceremony. The rapid succession of these losses—occurring between August 13 and September 21—has ignited public outcry over the cause of their deaths. The New…

Natasha Akpoti-Uduaghan celebrates office unsealing with cheering supporters

By Obinna Uballa Supporters of Senator Natasha Akpoti-Uduaghan on Tuesday thronged the streets of Abuja to celebrate the unsealing of her National Assembly office, six months after her suspension from the Senate. The crowd accompanied the Kogi Central lawmaker from the Federal Capital Territory High Court, where she had appeared in a defamation case filed…

Ad

  • Nigerians Raise Alarm..,

By Tolúlopé Olátúnjí

Despite a dramatic 50 per cent plunge in petrol consumption, Nigeria’s petrol importation costs surged by over 31%, according to a report from the National Bureau of Statistics (NBS).

The NBS reported that the country spent a staggering N2.63 trillion on Premium Motor Spirit (PMS) imports in the first quarter of 2024, accounting for a 31.4 per cent increase from the N1.81 trillion expenditure in the previous quarter.

Data reveals that in Q1 2023, Nigeria imported 6.37 billion litres of petrol at a cost of N1.49 trillion, with the subsidy regime setting the price at N234 per litre. In comparison, the previous year saw an expenditure of N1.51 trillion for 5.78 billion litres, equating to N260 per litre. This development has triggered massive concerns in Nigeria about the worsening economic situation.

It would be recalled that President Bola Ahmed Tinubu’s bold declaration on May 29, 2023, had ended the fuel subsidy era, sending petrol prices soaring to around N550 per litre, influenced further by the naira’s devaluation. The current pump price ranges between N600 and N700 per litre.

Following the subsidy removal, the Federal Government touted a 50% reduction in national oil consumption.

Recall that Minister for Information and National Orientation, Mohammed Idris had stated in February that Petrol importation has been reduced by 50% since the withdrawal of the fuel subsidy,” yet, the cost of PMS imports continues to rise.

However, economic experts attribute this development to the naira’s depreciation against the dollar, despite the reported consumption drop. In Q1 2024, with the country importing approximately 1 billion litres per month, the import cost averaged N878 per litre.

Meanwhile, this discrepancy has fueled accusations of a covert subsidy scheme, allegations the government vehemently denies. Minister of State for Petroleum Resources, Heineken Lokpobiri, reaffirmed recently that: “Subsidy is gone. There could be strategic interventions, but officially, the subsidy is gone.”

Recall also that the International Monetary Fund (IMF) has warned that under-recovery of costs could balloon subsidy costs to 3% of GDP in 2024, up from 1% in 2023, predicting the implicit fuel subsidy could devour up to N8.4 trillion in 2024.

Nigeria’s petrol import paradox continues to spark outrage and calls for transparency as Nigeria grapples with soaring import costs amid reduced consumption.

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp