The National Bureau of Statistics (NBS) has reported a significant decline in petrol imports following President Bola Tinubu’s removal of the fuel subsidy in May 2023. Petrol imports decreased to 20.30 billion litres in 2023, down from 23.54 billion litres in 2022, marking a 13.77% year-on-year reduction. The drop was most evident in the second half of the year, with imports falling by 29.99% compared to the first half.
The NBS report revealed that monthly petrol imports varied significantly, with figures showing sharp declines from 2.29 billion litres in March to as low as 1.09 billion litres in August. The overall trend suggests the subsidy removal’s immediate impact on Nigeria’s petrol consumption and imports.
The report also noted a rise in diesel imports, with 4.94 billion litres of Automotive Gas Oil (AGO) brought into the country in 2023—an increase of 23.66% from 2022. Local production of AGO and Household Kerosene saw modest growth as well.
Despite the decrease in petrol importation, Nigeria’s fuel import bill remained high, reflecting the country’s ongoing dependence on fuel imports. Critics have pointed out that while the subsidy removal may help redirect resources to other sectors like healthcare and education, it has led to soaring fuel prices, exacerbating the cost of living for Nigerians.
The debate continues over the true impact of the subsidy removal, as reports suggest the Nigerian National Petroleum Company Limited may still be bearing some costs related to fuel imports despite the policy shift.
