Nigeria’s importation of Premium Motor Spirit (PMS), commonly known as petrol, declined by 13.77% in 2023, according to the latest Petroleum Products Distribution Data from the National Bureau of Statistics (NBS).
The report shows that petrol imports fell from 23.54 billion litres in 2022 to 20.30 billion litres in 2023, following the removal of fuel subsidies by President Bola Ahmed Tinubu’s administration in May 2023.
The data also highlights a 16.96% drop in petrol distribution within the country, with 20.22 billion litres distributed in 2023, down from 24.35 billion litres in 2022.
In contrast, imports of Automotive Gas Oil (diesel) surged by 23.66%, with 4.94 billion litres brought into the country during the year.
The removal of the fuel subsidy, officially announced on May 29, 2023, during President Tinubu’s inauguration, triggered a sharp rise in fuel prices. Petrol prices spiked from N238 per litre to over N600 per litre.
By September 2024, prices had climbed even further, ranging between N950 and N1,100 per litre, as Nigeria began producing and distributing petrol locally through the Dangote Refinery, which commenced operations on September 15, 2024.
According to the NBS report, petrol imports saw a significant reduction in the second half of 2023, with a 29.99% drop compared to the first half. Year-on-year, imports in the second half of 2023 fell by 30.22%, with 8.36 billion litres imported, compared to 11.98 billion litres during the same period in 2022.
The total cost of fuel imports also saw a slight decline, with Nigeria spending N7.5 trillion on fuel imports in 2023, down 2.6% from N7.7 trillion in 2022.
However, in the first six months of 2024, the country’s fuel import bill surged to N5.8 trillion, marking an 87.09% increase from N3.1 trillion during the same period in 2023. The rise in import costs has been attributed to soaring crude oil prices and the depreciation of the naira.
Nigeria’s domestic petrol consumption reportedly dropped by 50% following the subsidy removal, with the possibility that some of the excess imports were redirected to other countries.
Minister of Information Idris Mohammed noted that the subsidy removal was aimed at freeing up resources for critical sectors such as healthcare, education, and infrastructure.
However, the policy has faced significant criticism, particularly from economists who argue that the removal disproportionately impacts lower-income Nigerians by exacerbating the cost of living, particularly due to higher fuel prices.
Controversy also surrounds the implementation of the subsidy removal. Reports suggest that the Nigerian National Petroleum Company (NNPC) may still be incurring some costs related to fuel imports, raising questions about the transparency of the subsidy elimination
