Nigeria has recorded a discount in petrol importation following the ‘removing of gas subsidy’ by President Bola Tinubu in Could 2023.
Based on the most recent petroleum merchandise distribution statistics report of the Nationwide Bureau of Statistics (NBS), petrol imports dropped by 3.58 billion litres within the second half of 2023 in comparison with the primary half of the 12 months.
The nation imported 8.36 billion litres of Premium Motor Spirit (PMS) in H2 2023, a big lower from the 11.94 billion litres imported in H1 2023, marking a 29.99% discount.
30.22% Y-O-Y lower
- This downward pattern is much more notable when in comparison with H2 2022. Within the latter half of 2022, petrol imports stood at 11.98 billion litres, leading to a 30.22% drop when in comparison with H2 2023, which is equal to a discount of three.62 billion litres.
- Additionally, for the whole 12 months of 2023, Nigeria imported 20.30 billion litres of Premium Motor Spirit (PMS), which is a lower from the 23.54 billion litres imported in 2022. This displays a discount of roughly 13.77% year-on-year.
These figures spotlight the profound influence of the subsidy removing on the amount of petrol imported into the nation.
The announcement of the gas subsidy removing was made on Could 29, 2023, throughout President Tinubu’s inauguration speech. Shortly after, gas costs soared throughout Nigeria, with some stations promoting PMS at costs as excessive as N700 per litre .
What it is best to know
Based on the 2023 full-year overseas commerce information, Nigeria’s gas import prices decreased by roughly 2.6%, from N7.7 trillion in 2022 to N7.5 trillion in 2023. When it comes to semi-annual comparability, the nation incurred N3.5 trillion in gas importation prices within the second half of 2023, representing a ten.26% lower in comparison with the N3.9 trillion recorded within the first half of the 12 months.
Additionally, within the first six months of 2024, the nation’s petrol import invoice stood at N5.8 trillion. When in comparison with the identical interval of 2023, the nation’s petrol import invoice elevated by 87.09% from N3.1 trillion. The numerous improve in petrol imports could be attributed to excessive crude oil costs coupled with a weakened naira.
The Minister of Data, Idris Mohammed, earlier mentioned that Nigeria’s home consumption dropped from 2 billion of petrol by 50% following the removing of gas subsidy. Mohammed mentioned that the decline in importation means that these imports are being redirected to locations aside from Nigeria.
The removing of the subsidy has not been with out controversy. Whereas the federal government insists that the transfer was important to unlock sources for essential sectors like healthcare, schooling, and infrastructure, economists argue that the removing disproportionately impacts lower-income Nigerians. Many have expressed issues in regards to the sudden rise in dwelling prices, exacerbated by larger gas costs .
Additionally, there was an ongoing debate over whether or not the subsidy was really eradicated, as reviews have surfaced suggesting that the Nigerian Nationwide Petroleum Firm (NNPC) should be incurring some prices associated to gas imports .
The controversy deepened when it was revealed that the NNPC had turned to the federal authorities for {financial} help to cowl gas import prices, even after the subsidy removing. This has raised questions in regards to the transparency of the federal government’s subsidy coverage and whether or not the removing is being absolutely carried out.
