Finance Minister and Coordinating Minister of the Economy, Wale Edun, has revealed that the country spends $600 million monthly on fuel imports. During an interview on AIT’s Moneyline program on Wednesday, Edun attributed this high import cost to neighboring countries, including those in Central Africa, benefiting from the country’s fuel imports.
Edun explained that this situation prompted President Bola Tinubu to remove the fuel subsidy, as the exact amount of fuel consumed domestically was unclear. A report by the National Bureau of Statistics (NBS) indicated that after the subsidy removal on May 29 last year, the country’s petrol imports were reduced to an average of one billion liters monthly.
“The fuel subsidy was removed on May 29, 2023, by Mr. President. At that time, the poorest 40 percent were only receiving four percent of the subsidy’s value, effectively not benefiting at all. So it was limited to just a few,” Edun said.
He emphasized the uncertainty around Nigeria’s actual fuel consumption, noting that the $600 million spent on imports monthly benefits neighboring countries. “We are purchasing fuel not only for Nigeria but also for countries to the east, almost as far as Central Africa, as well as for countries to the north and west. We must consider how long we want to continue this practice, which is the key issue regarding petroleum pricing,” Edun stated.