Minister of Information, Idris Mohammed, announced that Nigeria’s domestic petrol consumption has decreased by 50% from 2 billion liters following the removal of the fuel subsidy. Speaking to the media on Thursday, Mohammed explained that the reduction in importation indicates that these imports are being redirected to other destinations outside Nigeria.
He emphasized that the removal of the subsidy by President Tinubu is intended to benefit the country both in the short and long term. Mohammed also pointed out that the 2023 budget did not include provisions for the fuel subsidy, which Tinubu removed on May 29, 2023.
“The removal of the fuel subsidy is significant, and the president recognized that it would bring substantial benefits to the country in both the short and long term,” Mohammed said. “By May 29, 2023, when Tinubu took office, there was no allocation in the budget for the fuel subsidy. Since the president eliminated it, there was no need to budget for it.”
He further noted, “At that time, Nigeria was importing approximately 2 billion liters of PMS for domestic consumption. After the subsidy was removed, our domestic consumption dropped by about 50%. This was a clear indication of something. It either meant that people were becoming more disciplined in their fuel usage or that the imports were being redirected elsewhere. Studies suggest that the imports were indeed going to other destinations.”
Background:
In May 2023, President Tinubu declared the end of the fuel subsidy, terminating a popular yet ineffective policy that was costing the country an average of $10 billion annually. Tinubu stated that the funds would be redirected to more productive investments in public infrastructure, healthcare, and job creation to improve the lives of Nigerians.
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