How Nigeria’s Petrol Imports Hit A Historic Low: The Backlash Of Subsidy Removal

According to the National Bureau of Statistics, the total petrol imports decreased from 23.54 billion litres in 2022 to 20.30 billion litres in 2023, marking a year-on-year decline of 13.77%. The latter half of 2023 alone saw a reduction of 3.58 billion litres compared to the first half, highlighting the immediate impact of the subsidy removal on fuel consumption and import patterns.

In the first half of 2023, Nigeria imported 11.94 billion litres of petrol, but this figure plummeted to 8.36 billion litres in the second half, reflecting a staggering 29.99% decrease. The statistics reveal not only a drop in petrol imports but also a marked increase in domestic production of alternative fuels, such as diesel and kerosene.

For instance, the local production of Automotive Gas Oil rose to 4.94 billion litres, indicating a 23.66% increase from the previous year, while household kerosene production surged by 56.02%.

The implications of these changes are multifaceted. While the government argues that the subsidy removal allows for more investment in critical sectors like healthcare and education, the move has also led to skyrocketing fuel prices, with some stations selling petrol at prices as high as N700 per litre. Economists and citizens alike have voiced concerns over the adverse effects on lower-income Nigerians, as rising living costs compound the challenges faced in daily life.

The ongoing debate about the sustainability of these changes continues, particularly with reports of the Nigerian National Petroleum Company seeking government assistance for fuel import costs despite the subsidy being removed.