Nigeria allocates $600 million each month to fuel imports, as revealed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. This expenditure, according to Edun, is partly due to neighboring countries, including those as far as Central Africa, benefiting from these imports.
In an interview on AIT’s ‘Moneyline with Nancy,’ which was shared on the station’s YouTube channel on Wednesday, Edun explained that this prompted President Bola Tinubu to remove the fuel subsidy. The country lacked precise data on its domestic fuel consumption, leading to the decision to eliminate the subsidy.
Edun stated, “The fuel subsidy was removed on May 29, 2023, by Mr President, and at that time, the poorest 40 percent was only getting four percent of the value, essentially not benefiting at all. It was serving just a few.”
He emphasized the uncertainty surrounding Nigeria’s petroleum consumption. “We know we spend $600 million to import fuel every month, but the issue is that neighboring countries are benefiting. We are essentially buying fuel for countries to the east, almost as far as Central Africa, to the north, and to the west. We need to ask ourselves how long we want to continue this,” Edun said, highlighting the key issue of petroleum pricing.
Additionally, Edun clarified that the N570 billion fund release to state governments was implemented in December 2023. “This reimbursement was part of the COVID financing protocol, ensuring states have received more money to boost food production, as charged by Mr. President,” he concluded.
