Fuel Subsidy Removal: Nigeria’s Daily Petrol Consumption Drops by 30%

By: naijamedialog.com / September 2nd, 2023 / 15 views

Fuel Subsidy Removal: Nigeria’s Daily Petrol Consumption Drops by 30%

Fuel Subsidy Removal: Nigeria's Daily Petrol Consumption Drops by 30%

The amount of gasoline consumed in Nigeria has decreased by 30% after President Bola Ahmed Tinubu eliminated the gasoline subsidy.

Mele Kyari, the managing director of Nigerian National Petroleum Company Limited (NNPCL), made the declaration on Friday in Abuja during a press conference.

He said that the decrease in fuel consumption, from 66.7 million liters per day to roughly 46 million liters at the moment, also resulted in a 30% decrease in NNPCL’s need for foreign currency for fuel imports.

“Oil production ramped up to 1.6 million barrels by Wednesday, August 30, from a very poor position of less than 1 million a few months ago,” he said.

In order to revive the economy, the government is focusing on Nigerians’ funds kept in domestic and foreign accounts, according to Wale Edun, the minister of finance, who was present at the news conference.

He added that as part of the N5 billion palliative package recently announced to mitigate the effects of subsidy reduction on Petrol, the government distributed N2 billion to each of the 36 States of the Federation and the Federal Capital Territory (FCT).

He added that the Federal Government had to withhold the remaining N3 billion to prevent an increase in inflation rates if the money were issued all at once.

Edu highlighted that the fund was not included in the planned $800 million World Bank loan intended to lessen the impact of the elimination of subsidies.

The economic plan of the administration is based on increasing revenue, effective debt management, and automated revenue collection to plug leaks and create an environment that encourages private sector players to invest and thrive, according to Edun, who outlined some of his major policy plans for the country’s economy.

He claimed that in order to generate more foreign currency and foster an atmosphere that is favorable to both domestic and foreign businesses, the government will mobilize cash from increased oil output.