Nigeria spends $600 million monthly on fuel imports, revealed Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
Edun explained that this substantial expenditure is partly due to neighboring countries benefiting from these fuel imports, reaching as far as Central Africa. During an interview on AIT’s ‘Moneyline with Nancy,’ shared on the station’s YouTube channel on Wednesday, Edun said this situation prompted President Bola Tinubu to eliminate the fuel subsidy because the country lacked precise data on its domestic fuel consumption.
He stated, “The fuel subsidy was removed on May 29, 2023, by Mr. President. At that time, the poorest 40 percent of the population was only getting four percent of the subsidy’s value and were not benefiting at all, while only a few were benefiting.
“Another critical issue is that nobody knows the actual petroleum consumption in Nigeria. We know we spend $600 million to import fuel every month, but the neighboring countries benefit. So we are not just buying for Nigeria; we are buying for countries to the east, almost as far as Central Africa, and for countries to the north and west. We must ask ourselves as Nigerians, how long do we want to continue this? That is the key issue regarding petroleum pricing.”
Edun also clarified the N570 billion fund release to state governments implemented in December 2023.
“This refers to a reimbursement they received from December last year onwards, under the COVID financing protocol. The states have received more money, and Mr. President has charged to ensure food production in the states,” he explained.
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