Nigeria spends N2.52 Trillion on petrol imports within the first 9 month of 2021

Nigeria imported Premium Motor Spirit (PMS), also known as petrol, between January 2021 and September 2021. It was worth N2.52 trillion. This is 55.6% more than the N1.62 trillion that was spent in the same time frame in 2020.

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In its Gireign trade reports, the National Bureau of Statistics (NBS), confirmed this information.

This development was made possible by the Federal Government’s plan for eliminating petrol subsidies by the end 2022.

NBS’s opinion on petrol import

According to the NBS report, Petrol’s N2.52 Trillion import bill for the first nine month of the year was 47.37% and 25.37% respectively higher than the total amount spent by the country on PMS imports during the entire of 2019 and 2020.

“Nigeria spent N2.01trillion to import petrol in 2020, as compared with N1.71trillion the previous year. In the third quarter, N1.05trillion was spent on petrol imports. This is an increase of N782.46 billion for Q2 and N687.74 billion for Q1.

“Petrol tops the list of products import into the country during Q3, accounting for 12.52% (up from 11.26% the previous quarter).”

What You Need to Know

  • Nairametrics reported that Nigeria imported motor spirits (petrol) in the second quarter 2021. This represents a 799% increase year-on-year compared to the N87.08 billion recorded for the same period in 2020.
  • The record petrol import is 14% more than the N687.74 trillion recorded in the preceding quarter. It also marks the highest petrol import value since Q3 2018.
  • Nigeria’s foreign trade grew to N12.03 trillion during Q2 2021 from N9.76 trillion, N6.37 trillion, and Q1 2020 respectively. It did however record a trade deficit in N1.87 trillion during the period, as imports (N6.95 Trillion) exceeded the export value of N5.08 Trillion.
  • After reducing the price of petrol to N125 per gallon from N145, the Federal Government had removed the subsidy for petrol in March 2020. This was in response to the sharp fall in crude oil prices.
  • Since its resurfacing, the subsidy cost has been borne by the NNPC. It has been the only importer of petrol to the country in recent decades.

Over the years, Nigeria has spent significant forex to import petroleum products. It is anticipated that Dangote Refinery’s kickstart would resolve the problem of Nigerian petrol imports. The refinery has a capacity of producing 650,000 barrels per day.

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