The National Bureau of Statistics (NBS) has revealed a significant reduction in Nigeria’s petrol importation following the removal of fuel subsidy by President Bola Tinubu in May 2023.
The total volume of petrol imports fell by 13.77%, decreasing from 23.54 billion litres in 2022 to 20.30 billion litres in 2023.
In its latest petroleum products distribution report, the NBS noted a sharp decline in petrol imports during the second half of 2023. The country imported 8.36 billion litres of Premium Motor Spirit (PMS) in the latter half of the year, a 29.99% decrease from the 11.94 billion litres imported in the first half of 2023. This reduction reflects the impact of the subsidy removal on Nigeria’s fuel import trends.
Petrol distribution also saw a decline, with 20.22 billion litres of PMS distributed in 2023, a 16.96% decrease from the 24.35 billion litres recorded in 2022. In comparison to the second half of 2022, when petrol imports stood at 11.98 billion litres, the drop in H2 2023 represents a 30.22% decrease, equating to 3.62 billion litres.
Monthly data showed fluctuations in petrol imports throughout 2023, with January recording 2.09 billion litres, February 1.99 billion litres, March 2.29 billion litres, and May 2.01 billion litres. The figures declined further in the latter half of the year, with July seeing 1.45 billion litres and September recording 1.21 billion litres.
Conversely, the volume of Automotive Gas Oil (diesel) imported into Nigeria rose by 23.66%, from 4 billion litres in 2022 to 4.94 billion litres in 2023. Domestic production of AGO also increased by 6.76%, reaching 109.39 million litres in 2023.
The NBS report also highlighted a 56.02% rise in locally produced Household Kerosene, with 69.71 million litres produced in 2023, compared to 44.68 million litres in 2022.
President Tinubu’s decision to remove the fuel subsidy during his May 29 inauguration led to a spike in fuel prices across the country, with petrol prices rising to as much as N700 per litre in some areas. The NBS data showed that Nigeria’s spending on fuel imports dropped by 2.6%, from N7.7 trillion in 2022 to N7.5 trillion in 2023. The second half of 2023 saw a 10.26% decline in fuel importation costs compared to the first half of the year.
However, in the first six months of 2024, Nigeria’s petrol import bill surged by 87.09%, rising to N5.8 trillion compared to N3.1 trillion during the same period in 2023. The increase is attributed to high crude oil prices and the depreciation of the naira.
Minister of Information Idris Mohammed previously stated that domestic fuel consumption had dropped by 50% following the subsidy removal, suggesting that imports might be redirected to other destinations. However, the subsidy removal has sparked widespread debate, with critics arguing that it disproportionately affects low-income Nigerians amid rising living costs.
Questions have also been raised about the transparency of the government’s subsidy policy, with reports suggesting that the Nigerian National Petroleum Company Limited (NNPC) may still be incurring fuel import costs despite the subsidy removal. This has led to concerns about the effectiveness of the policy and its implementation.
