Nigeria's monthly expenditure on fuel importation has reached a staggering $600 million, as disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
This major outlay is partly due to neighboring countries, extending as far as Central Africa, benefiting from these imports.
Edun made this revelation during an interview on AIT’s Moneyline program, which was shared on their YouTube channel on August 7, 2024.
Edun explained that the lack of precise data on Nigeria's domestic fuel consumption prompted President Bola Tinubu to eliminate the fuel subsidy on May 29, 2023.
He stated, "The fuel subsidy was removed May 29, 2023, by Mr. President, and at that time, the poorest 40 percent was only getting four percent of the value, and basically, they were not benefitting at all."
The National Bureau of Statistics reported that the nation’s petrol imports dropped to an average of one billion liters per month following the subsidy removal.
Despite this, Nigeria's spending on premium motor spirit surged to N2.6 trillion in the first quarter of 2024, marking a 46 percent rise from the previous quarter.
The total expenditure for 2023 amounted to N7.5 trillion, with the increase attributed to the depreciation of the exchange rate, which hit a record low at the end of the first quarter of 2024.
Edun emphasized the need for decisive action to address this issue, as it hinders economic growth. He highlighted that Nigeria is effectively subsidizing fuel for neighboring countries, stating, "We are buying not just for Nigeria; we are buying for countries to the east, almost as far as Central Africa. We are buying for countries to the North and West."
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