Nigeria has experienced a significant decline in the importation of petrol following the removal of the fuel subsidy by President Bola Tinubu in May 2023. According to the National Bureau of Statistics (NBS), the country imported 20.30 billion litres of petrol in 2023, which is a 13.77% decrease from the 23.54 billion litres imported in 2022.
The NBS revealed this data in its latest petroleum products distribution report, released on Tuesday. It noted that the drop in petrol imports became more evident in the second half of 2023. The country imported 8.36 billion litres in the second half of the year, compared to 11.94 billion litres in the first half. This marks a notable 29.99% reduction in petrol imports between the two periods.
“In 2023, PMS truck-out stood at 20.22 billion litres, indicating a 16.96 per cent decrease relative to 24.35 billion litres recorded in 2022,” the NBS report stated. The data also highlighted the impact of subsidy removal on import figures, as petrol imports in the latter half of 2022 amounted to 11.98 billion litres, which represents a 30.22% drop compared to the same period in 2023.
Monthly data for 2023 shows fluctuating petrol imports, with 2.09 billion litres imported in January and decreasing to 1.99 billion litres in February. The figures saw a slight increase in March, reaching 2.29 billion litres, but dropped again throughout the year. The lowest import volumes were recorded in August, with only 1.09 billion litres brought into the country.
The removal of fuel subsidy has had a significant effect not just on petrol imports but also on the importation and local production of other fuel types. For instance, Nigeria’s import of Automotive Gas Oil (diesel) increased from four billion litres in 2022 to 4.94 billion litres in 2023, representing a rise of 23.66%. Local production of diesel also saw a slight increase, from 102.47 million litres in 2022 to 109.39 million litres in 2023.
Meanwhile, the production of household kerosene experienced substantial growth. In 2023, Nigeria produced 69.71 million litres of kerosene, marking a 56.02% increase compared to the 44.68 million litres produced in 2022.
President Tinubu’s decision to remove the fuel subsidy was announced during his inauguration speech on May 29, 2023. The policy sparked immediate controversy, as petrol prices soared across Nigeria, reaching as high as N700 per litre in some areas. The government defended the move, arguing that the funds saved from the subsidy would be redirected to critical sectors like healthcare, education, and infrastructure. However, many Nigerians, especially those in lower-income brackets, have felt the burden of the increased fuel prices.
Minister of Information Idris Mohammed reported a 50% reduction in Nigeria’s domestic fuel consumption following the subsidy removal. He suggested that the decrease in petrol imports might indicate that some of these imports are being redirected to other destinations outside of Nigeria.
The controversy surrounding the subsidy removal continues, with doubts over the true state of the subsidy program. There are reports that the Nigerian National Petroleum Company Limited (NNPC) is still incurring costs related to fuel imports and seeking financial assistance from the federal government. This has raised concerns about the transparency of the subsidy removal and whether it has been fully implemented.
