The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has revealed that Nigeria is spending $600 million each month on fuel imports, attributing the high cost to the significant benefits reaped by neighboring countries, including those as far as Central Africa.
Edun shared these insights during an interview which aired on YouTube on Wednesday. He highlighted that the substantial outlay on fuel imports was a critical factor in President Bola Tinubu’s decision to remove the fuel subsidy. The lack of accurate data on domestic fuel consumption further complicated the situation.
According to a report by the National Bureau of Statistics, the country’s petrol imports decreased to an average of one billion liters per month following the subsidy removal on May 29 last year.
“The fuel subsidy was removed on May 29, 2023, by Mr. President. At that time, the poorest 40 percent of Nigerians were receiving only four percent of the subsidy’s value, meaning they were not benefitting significantly at all. Essentially, the subsidy was benefiting only a few,” Edun stated.
He further elaborated, “Another crucial point is that we don’t have precise data on Nigeria’s petroleum consumption. We know we spend $600 million monthly on fuel imports, but the issue is that neighboring countries are benefiting from our imports. We are essentially purchasing fuel for countries to the east, nearly as far as Central Africa, as well as for countries to the north and west. We need to consider how long we want to continue this practice, which is central to the debate on petroleum pricing.”
Edun also underscored the administration’s commitment to the welfare of Nigerians, particularly in ensuring the availability and affordability of food.