According to the National Bureau of Statistics, Nigeria has reduced its petrol imports since President Bola Tinubu removed gasoline subsidies in May 2023.
It also stated that overall gasoline imports fell to 20.30 billion litres in 2023 from 23.54 billion litres in 2022, representing a 13.77 percent decline year on year. It stated this in the agency’s latest petroleum product distribution figures, which were released on Tuesday, noting that petrol imports fell by 3.58 billion litres in the second half of 2023 compared to the first half of the year.
It stated that the country imported 8.36 billion liters of Premium Motor Spirit (petrol) in H2 (first half) of 2023, a considerable fall from 11.94 billion liters imported in H1 2023, marking a 29.99 per cent reduction. It said, “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.
“In terms of imported products, 20.30 billion litres of Premium Motor Spirit were imported in 2023 relative to 23.54 billion litres in 2022, showing a decrease of 13.77 per cent. This downward trend is even more notable when compared to H2 2022.
“In the latter half of 2022, petrol imports stood at 11.98 billion litres, resulting in a 30.22 per cent drop when compared to H2 2023, equivalent to a reduction of 3.62 billion litres.”
A analysis of monthly gasoline imports in 2023 revealed that 2.09 billion were brought in January, fell to 1.99 billion in February, surged to 2.29 billion in March, 1.91 billion in April, and 2.01 billion in May.
The figure was 1.64 billion in June, 1.45 billion in July, 1.09 billion in August, 1.21 billion in September, 1.16 billion in October, 1.55 billion in November, and 1.88 billion in December. These numbers demonstrate the impact of subsidy reduction on the volume of petrol imported into the country.
Similarly, the bureau reported that the volume of Automotive Gas Oil, generally known as diesel, imported into Nigeria increased to 4.94 billion litres in 2023 from four billion litres in 2022. The statistics also showed that 109.39 million litres of AGO was locally produced in 2023, representing a 6.76 per cent rise from 102.47 million litres produced in 2022.
“About 69.71 million litres of Household Kerosene were locally produced in 2023 compared to 44.68 million litres in 2022, indicating a growth rate of 56.02 per cent over the period.
“For Automotive Gas Oil, 109.39 million litres were locally produced in 2023, when compared to 102.47 million litres reported in 2022. This represents a 6.76 per cent growth rate.
“Also, 4.94 billion litres of Automotive Gas Oil were imported in 2023, indicating an increase of 23.66 per cent compared to four billion litres in the previous year,” It added.
President Tinubu said in his inauguration speech on May 29 that the petrol price subsidy would be removed completely. Shortly after, petrol prices skyrocketed across Nigeria, with some stations selling PMS for as much as N700 per litre.
According to the 2023 full-year foreign trade data, Nigeria’s spending on fuel imports fell by about 2.6%, from N7.7 trillion in 2022 to N7.5 trillion in 2023. In terms of semi-annual comparison, the country’s gasoline importation costs was N3.5 trillion in the second half of 2023, a 10.26% decrease from the N3.9 trillion reported in the first half.
Also, in the first six months of 2024, the country’s petrol import bill stood at N5.8tn. When compared to the same period of 2023, the country’s petrol import bill increased by 87.09 per cent from N3.1tn. The significant increase in petrol imports can be attributed to high crude oil prices coupled with a weakened naira.
The Minister of Information, Idris Mohammed, earlier said that Nigeria’s domestic consumption dropped by 50 per cent from two billion litres following the removal of fuel subsidy.
Mohammed said that the decline in importation suggests that these imports are being redirected to destinations other than Nigeria. The subsidy removal has sparked significant controversy. While the government argues that it was necessary to allocate resources to essential sectors like healthcare, education, and infrastructure, economists contend that it unfairly impacts lower-income Nigerians.
Many have voiced concerns over the sharp increase in living costs due to rising fuel prices. Additionally, there is ongoing debate about whether the subsidy has truly been abolished, as reports indicate that the Nigerian National Petroleum Company Limited may still be incurring costs related to fuel imports.
The situation escalated when it was revealed that the NNPC sought financial assistance from the federal government for fuel import costs, despite the subsidy removal.
