Nigeria has experienced a significant decrease in petrol imports following President Bola Tinubu’s removal of the fuel subsidy in May 2023.
According to the latest report from the National Bureau of Statistics (NBS), petrol imports fell by 3.58 billion litres in the second half of 2023, totaling 8.36 billion litres compared to 11.94 billion litres in the first half of the year.
This reduction marks a 29.99% decline from the earlier period and is a notable 30.22% decrease compared to the same time last year.
For the entire year of 2023, Nigeria imported 20.30 billion litres of petrol, down from 23.54 billion litres in 2022, reflecting a 13.77% year-on-year decrease.
The removal of the subsidy has had a profound impact on import volumes and costs.
Although the total import cost slightly decreased from N7.7 trillion in 2022 to N7.5 trillion in 2023, the country spent N3.5 trillion on fuel imports in the second half of 2023, down 10.26% from the first half.
Despite the reduction in imports, the removal of the subsidy has sparked controversy. While the government argues that it is freeing up resources for vital sectors like healthcare and education, critics say it has disproportionately impacted lower-income Nigerians, who now face rising living costs due to higher fuel prices.
Additionally, questions have arisen regarding the transparency of the subsidy policy, especially after reports suggested that the Nigerian National Petroleum Company (NNPC) is still seeking government support to cover fuel import costs, raising doubts about the full implementation of the subsidy removal.