Fuel Imports Consume N2tn Monthly – FG

By Kingnaafrika.

Published on August 8, 2024

President Bola Tinubu recently revealed that Nigeria spends a staggering N2 trillion monthly to import petrol and diesel. Despite being an oil-rich nation, Nigeria has long neglected its abundant gas resources, relying solely on oil-based petrol. Tinubu’s administration took a bold step by removing fuel subsidies, resulting in a significant increase in petrol prices—from about N200 per liter in May 2023 to approximately N700 currently.

To address this issue, the government launched the Compressed Natural Gas (CNG) Initiative. Here are the key points:

1. CNG Initiative: The administration aims to power the transportation economy using CNG, which will save over N2 trillion monthly. These funds can then be redirected toward healthcare and education.

2. Conversion Kits: Commercial vehicle owners—who currently consume 80% of imported petrol and diesel—will receive one million conversion kits. These kits will enable vehicles to run on CNG, reducing transportation costs by approximately 60% and helping curb inflation.

3. Dangote Refinery: Despite being Africa’s largest oil producer, Nigeria still depends on imported petroleum products due to low refining capacity. Alhaji Aliko Dangote’s refinery was expected to change this, but it faces challenges with crude supply. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) insists on fuel importation, citing concerns about the Dangote refinery’s diesel quality.

In summary, President Tinubu’s administration is taking steps to revolutionize Nigeria’s energy landscape, emphasizing CNG usage and reducing reliance on costly fuel imports.

Source: Punch Newspapers¹

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