Nigeria Sees Significant Decline in Fuel Consumption Following Removal of Subsidies…
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed a notable drop in the average daily fuel consumption in Nigeria since President Bola Ahmed Tinubu announced the discontinuation of fuel subsidies.
Recent data shared with Reuters by the NMDPRA indicates that in June, the average daily petrol consumption decreased to 48.43 million liters (13 million gallons), a decline of approximately 28 percent from the previous average of 66.9 million liters.
The petroleum regulatory body further highlighted that neighboring countries such as Cameroon, Benin, and Togo, which relied on smuggled petrol from Nigeria, have witnessed a collapse in their black market operations following the subsidy removal. President Tinubu had announced the termination of fuel subsidies, which had maintained low petrol prices for many years, during his inaugural speech on May 29, 2023.
In his democracy day speech on June 12, the President acknowledged that the decision to eliminate fuel subsidies would impose an additional burden on the masses.
However, he appealed to the citizens to endure the consequences of this action, emphasizing that it would ultimately “save our country from going under.” The removal of the fuel subsidy, which tripled the price of petrol, has had a widespread impact on various sectors of the economy, leading to increased prices of goods and services across the nation.
According to the World Bank’s report in June, despite having spent $2.41 billion on subsidies in the first five months of the year, Nigeria is projected to save up to $5.10 billion in 2023 due to the removal of fuel subsidies and foreign exchange reforms. Notably, the Nigerian government expended no less than $10 billion (£7.8 billion) on subsidies in the previous year.
