Nigeria Spends $600 Million Monthly on Fuel Imports – Edun
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun,
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed that Nigeria spends $600 million every month on fuel imports. He explained that neighboring countries, even those as far as Central Africa, benefit from these imports.
Reason for Removing Fuel Subsidy
Edun shared this information during an interview on AIT’s Moneyline program, which aired on YouTube. He stated that the high cost of fuel imports influenced President Bola Tinubu’s decision to remove the fuel subsidy. The country lacks accurate data on how much fuel is consumed domestically. According to the National Bureau of Statistics, Nigeria’s petrol imports decreased to an average of one billion liters per month after President Tinubu removed the fuel subsidy on May 29, 2023.
The fuel subsidy was removed on May 29, 2023, by Mr. President. At that time, the poorest 40% of the population was only receiving 4% of the subsidy’s value and were not benefiting at all. So, the subsidy was only helping a few people.” – Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
Wale Edun’s disclosure about Nigeria’s $600 million monthly expenditure on fuel imports highlights the significant financial burden and inefficiencies associated with fuel subsidies. The removal of the subsidy aims to address these issues and ensure that resources are better allocated. As Nigeria navigates these economic challenges, the focus remains on balancing the cost of fuel imports with the welfare of its citizens, particularly in making essential goods like food more accessible and affordable.