Following the removal of fuel subsidies by President Bola Tinubu, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has revealed that the average daily consumption of fuel in Nigeria has fallen by no fewer than 28 percent.
According to new figures released to Reuters by NMDPRA, the average daily petrol consumption fell to 48.43 million liters (13 million gallons) in June, as against the previous average of 66.9 million.
The regulatory industry noted that since the scrapping of the subsidy, neighboring countries like Cameroon, Benin, and Togo, which relied on petrol smuggled out of Nigeria, have experienced a collapse in their black market.
Recall that Tinubu announced the removal of fuel subsidies, which had kept petrol prices low for decades, during his inaugural speech on May 29, 2023.
In his democracy day speech, June 12, the President admitted the decision to remove fuel subsidies would impose an extra burden on the masses, but appealed to the good people of the country to bear the brunt of the decision as it will “save our country from going under.”
According to the World Bank in June, despite having spent $2.41 billion on the subsidy in the first five months, Nigeria could save up to $5.10 billion this year from the removal of fuel subsidies and foreign exchange reforms.
The Nigerian government spent no less than $10 billion (£7.8 billion) on the subsidy last year.
