Nigeria spends $600 million each month on fuel imports, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has revealed.
According to him, this expenditure is partly because neighbouring countries, as far away as Central Africa, are benefitting from these fuel imports.
Speaking during an interview on AIT’s ‘Moneyline with Nancy,’ which was shared on the station’s YouTube channel on Wednesday, Edun explained that this situation prompted President Bola Tinubu to eliminate the fuel subsidy, as the country lacked precise data on its domestic fuel consumption.
He stated, “The fuel subsidy was removed on May 29, 2023, by Mr. President, and at that time, the poorest 40 percent of the population were receiving only four percent of the benefit, meaning they were not truly benefitting at all. So, it was just a select few.
“Another critical point is that nobody knows the actual petroleum consumption in Nigeria. We know we spend $600 million to import fuel every month, but the issue is that all the neighbouring countries are benefitting.
“We are not just buying for Nigeria; we are supplying countries to the east, as far as Central Africa, as well as those to the north and west. We must ask ourselves as Nigerians: how long do we want to continue this practice? That is the key issue regarding petroleum pricing.”
The finance minister further clarified that the release of the N570 billion fund to state governments was implemented in December 2023.
“This refers to reimbursements that the states began receiving from December last year onwards, which were part of the COVID financing protocol. The point is that the states have received more funds. Mr. President has tasked us with ensuring food production in the states,” he said.
