By Milcah Tanimu

President Bola Tinubu has revealed that Nigeria is currently expending ₦2 trillion monthly on importing petrol and diesel. This disclosure was made during his recent nationwide broadcast to the nation.

Despite Nigeria’s significant oil and gas resources, Tinubu noted that the country had been heavily reliant on oil-based petrol while neglecting its gas resources and subsidizing fuel costs. To address this, Tinubu’s administration removed fuel subsidies on his first day in office, resulting in a rise in petrol prices from around ₦200 per litre in May 2023 to approximately ₦700 currently.

In response to the fuel subsidy removal, Tinubu announced the launch of the Compressed Natural Gas (CNG) Initiative. This initiative aims to reduce the reliance on imported petrol and diesel, save over ₦2 trillion a month, and redirect resources into sectors like healthcare and education.

The President stated that the government is distributing one million conversion kits to commercial vehicle owners, who are significant consumers of imported fuel. The CNG initiative is expected to cut transportation costs by about 60% and help mitigate inflation.

Tinubu also highlighted that while the Nigerian National Petroleum Company Limited (NNPCL) remains the sole importer of petrol, private individuals are licensed to import diesel. The Dangote refinery, which was anticipated to end Nigeria’s dependence on fuel imports, has faced challenges in sourcing crude oil due to international oil companies reportedly withholding supplies.

Further complicating the situation, Dangote refinery officials claimed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) granted licenses for importing lower-quality fuel, contrary to their assertions. NMDPRA Chief Executive Farouk Ahmed denied these claims and emphasized that the country’s fuel importation would persist due to the refinery’s issues.

In response, Tinubu has directed that crude be supplied to the Dangote refinery in local currency, which he believes will save the country over $660 million monthly. This move is part of a broader strategy to stabilize fuel supply and reduce import dependency.