Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, has revealed that the country spends $600 million each month on fuel imports. This expenditure, he noted, extends beyond Nigeria, benefiting neighboring countries and even reaching as far as Central Africa.
Edun discussed these figures during an interview on AIT’s Moneyline program, which was posted on their YouTube channel on Wednesday. He explained that this substantial spending was a key factor behind President Bola Tinubu’s decision to remove the fuel subsidy, due to the lack of accurate data on domestic fuel consumption.
According to the National Bureau of Statistics, petrol imports fell to an average of one billion liters per month following the subsidy removal on May 29, 2023. Edun highlighted that prior to the subsidy removal, the poorest 40 percent of Nigerians only received four percent of the subsidy’s benefits, rendering the policy ineffective for the majority.
He emphasized, “The issue is that we are importing fuel not just for Nigeria but for neighboring countries to the east, north, and west. This situation raises a critical question: How long can we continue this practice?”
Edun stressed the need for decisive action to address the issue, as it poses a significant barrier to economic growth.
In related news, Nigeria’s spending on petrol surged to N2.6 trillion in the first quarter of 2024, a 46 percent increase from the previous quarter. In the fourth quarter of 2023, the cost of petrol imports stood at N1.8 trillion, with the total expenditure for the year reaching N7.5 trillion. This rise in costs is attributed to the depreciation of the exchange rate, which hit a record low at the end of the first quarter of 2024.
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