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Nigeria: After subsidy removal, petrol imports fell by 3.58bn litres— Govt

Published

2 months ago

October 2, 2024

According to the National Bureau of Statistics, Nigeria’s petrol imports decreased after President Bola Tinubu eliminated the petrol subsidy in May 2023.

The report also stated that the total amount of petroleum imported fell by 13.77% year over year to 20.30 billion litres in 2023 from 23.54 billion litres in 2022.

The most recent figures on the agency’s distribution of petroleum products, which were made public on Tuesday, revealed this. The data showed that, in comparison to the first half of the year, petrol imports decreased by 3.58 billion litres in the second half of 2023.

According to the report, in the second half of 2023 (H2), the nation imported 8.36 billion litres of Premium Motor Spirit (petrol), a notable drop from the 11.94 billion litres imported in the first half of 2023 (29.99%).

It said, “In 2023, PMS truck out stood at 20.22 billion litres, indicating a 16.96 per cent decrease relative to 24.35 billion litres recorded in 2022.

“In terms of imported products, 20.30 billion litres of Premium Motor Spirit were imported in 2023 relative to 23.54 billion litres in 2022, showing a decrease of 13.77 per cent. This downward trend is even more notable when compared to H2 2022.

“In the latter half of 2022, petrol imports stood at 11.98 billion litres, resulting in a 30.22 per cent drop compared to H2 2023, equivalent to a reduction of 3.62 billion litres.”

The petrol imports for each month in 2023 were broken down as follows: 2.09 billion in January, 1.99 billion in February, 2.29 billion in March, 1.91 billion in April, and 2.01 billion in May.

June saw 1.64 billion, July 1.45 billion, August 1.09 billion, September 1.21 billion, October 1.16 billion, November 1.55 billion, and December 1.88 billion.

These numbers demonstrate how the amount of petrol brought into the nation has changed as a result of the elimination of subsidies.

In a similar vein, the agency reported that the amount of diesel, also known as automotive petrol oil, imported into Nigeria increased from four billion litres in 2022 to 4.94 billion litres in 2023.

Additionally, according to the data, local production of AGO increased to 109.39 million litres in 2023 from 102.47 million litres in 2022, a 6.76% increase.

“About 69.71 million litres of Household Kerosene were locally produced in 2023 compared to 44.68 million litres in 2022, indicating a growth rate of 56.02 per cent over the period.

“For Automotive Gas Oil, 109.39 million litres were locally produced in 2023, when compared to 102.47 million litres reported in 2022. This represents a 6.76 per cent growth rate.

“Also, 4.94 billion litres of Automotive Gas Oil were imported in 2023, indicating an increase of 23.66 per cent compared to four billion litres in the previous year,” It added.

Meanwhile, there are concerns that the NNPCL may still be paying for fuel imports after applying for financial aid from the federal government to cover the cost of petroleum imports even after the subsidies were eliminated, raising questions about whether the subsidy has been eliminated.

Related Topics:Featured Nigeria Petrol subsidy

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Food prices drive second straight monthly hike in Nigeria’s inflation

Published

20 hours ago

November 17, 2024

Ifeoluwa Dada

According to official statistics released on Friday, Nigeria’s inflation rate increased for the second consecutive month in October, rising to 33.88% in annual terms from 32.70% in September, mostly as a result of increasing food costs.

In an attempt to boost economic development and strengthen public finances, President Bola Tinubu devalued the naira and reduced subsidies, which caused inflation to spike in the second half of last year.

As the effects of the naira devaluation started to lessen in July of this year, a slew of hikes in the price of petroleum and devastating floods that destroyed crops once again exacerbated pricing pressures, making the greatest cost-of-living crisis in decades worse in Africa’s most populous country.

According to the National Bureau of Statistics, price increases for basics such as rice, maize, bread, potatoes, and cooking oil prompted food inflation to surge from 37.77% in October to 39.16% year over year.

This year, more than 1.5 million hectares of agriculture have been damaged by torrential rain and floods in 29 of Nigeria’s 36 states, leaving millions hungry and displacing large numbers of people.

In an effort to curb inflation, the central bank has raised interest rates five times this year. On November 26, it is expected to make its final rate decision of the year.

VenturesNow

MTN financial report reveals drop in group service revenue

Published

20 hours ago

November 17, 2024

Ifeoluwa Dada

Due to operational difficulties in Sudan and the depreciation of the Nigerian naira, MTN Group, Africa’s largest telecom provider, announced on Thursday an 18.5% decline in service revenue for the third quarter that concluded on September 30.

With 288 million users in 17 African regions, MTN said that its group service revenue dropped from 156.3 billion rand ($6.99 billion) in the same quarter of the previous year to 127.4 billion rand.

Despite stating that “the naira was less volatile on a sequential basis in Q3 than in preceding quarters,” the business reported a 48.7% decline in MTN Nigeria’s income due to the currency’s depreciation.

Due to a stronger Ugandan shilling than the previous year, Uganda’s largest contributor, MTN South Africa (MTN SA), expanded by a meagre 3.3%.

Due to “subscriber registration regulations in Nigeria and a decline in users in Sudan, where the conflict has displaced millions of people,” the business reported that its subscriber base increased by 1.6% to 288 million.

Given the higher demand in Nigeria despite the legal obstacles, MTN plans to increase its capital expenditures, which it expects would total between 28 and 33 billion rand for the entire year.