The National Bureau of Statistics (NBS) has reported a significant decrease in petrol imports in Nigeria after the removal of fuel subsidies by President Bola Tinubu in May 2023. The total petrol imports fell to 20.30 billion litres in 2023, down from 23.54 billion litres in 2022, marking a 13.77% year-on-year decline.
According to the latest petroleum product distribution statistics released on Tuesday, petrol imports decreased by 3.58 billion litres in the second half of 2023 compared to the first half. The country imported 8.36 billion litres of Premium Motor Spirit (petrol) in the second half of 2023, a notable decline from 11.94 billion litres in the first half, reflecting a 29.99% reduction.
The NBS stated, “In 2023, PMS truck out stood at 20.22 billion litres, indicating a 16.96% decrease relative to 24.35 billion litres recorded in 2022.” The report also noted that petrol imports in the latter half of 2022 stood at 11.98 billion litres, resulting in a 30.22% drop compared to the same period in 2023, equivalent to a reduction of 3.62 billion litres.
Monthly breakdowns of fuel imports in 2023 showed fluctuations, with January seeing 2.09 billion litres, which decreased to 1.99 billion in February. The imports peaked at 2.29 billion in March before steadily declining to 1.09 billion in August.
The statistics also indicated that Automotive Gas Oil (diesel) imports increased to 4.94 billion litres in 2023 from four billion litres in 2022. Local production of Automotive Gas Oil reached 109.39 million litres, representing a 6.76% rise compared to the previous year. Additionally, local production of Household Kerosene surged by 56.02%, reaching 69.71 million litres in 2023.
Following the removal of the fuel subsidy on May 29, 2023, petrol prices soared, with some stations charging as high as N700 per litre. The government’s total spending on fuel imports decreased from N7.7 trillion in 2022 to N7.5 trillion in 2023.
In the second half of 2023, the cost of fuel imports dropped by 10.26%, amounting to N3.5 trillion compared to N3.9 trillion in the first half. However, Nigeria’s petrol import bill for the first six months of 2024 stood at N5.8 trillion, reflecting an 87.09% increase from N3.1 trillion in the same period of 2023.
The Minister of Information, Idris Mohammed, noted that Nigeria’s domestic petrol consumption dropped by 50% after the subsidy removal, suggesting that reduced imports may be redirected to other countries. The subsidy removal has ignited controversy, as the government argues it is necessary to redirect funds to critical sectors like healthcare and education. Critics, however, claim it has disproportionately affected low-income citizens, contributing to rising living costs.
Concerns have also been raised about the transparency of the subsidy policy, especially as reports emerged indicating that the Nigerian National Petroleum Company Limited (NNPC) may still incur costs related to fuel imports, prompting the company to seek financial assistance from the federal government.
