Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has disclosed that Nigeria spends $600 million monthly on fuel importation. He attributed this high import bill to neighbouring countries, including those as far as Central Africa, benefiting from Nigeria’s fuel imports.
Edun revealed this on Wednesday, explaining that the ambiguity surrounding Nigeria’s actual internal fuel consumption prompted President Bola Tinubu to remove the fuel subsidy.
“The fuel subsidy was removed on May 29, 2023, by Mr. President,” Edun stated. “At that time, the poorest 40 percent were only receiving four percent of the value, essentially benefiting very little. Additionally, nobody knows the exact petroleum consumption in Nigeria. We spend $600 million monthly on fuel imports, but our neighboring countries are reaping the benefits.”
He stressed that Nigeria is essentially subsidizing fuel for countries to the east, north, and west, up to Central Africa. “We must ask ourselves how long we want to continue this,” Edun added, highlighting the need for decisive action to foster economic growth.
Edun emphasized the government’s commitment to the welfare of its citizens, particularly the vulnerable, with a focus on food availability and affordability.
He further clarified that the N570 billion fund release to state governments was implemented in December last year as part of a reimbursement under the COVID financing protocol. “The states have received more money, and Mr. President has urged the increase of food production in the states,” he said.
Addressing the recent decision to raise the maximum borrowing percentage in the Ways and Means from five to ten percent, Edun noted that it does not indicate a reliance on Central Bank of Nigeria financing. Instead, the government has utilized market instruments to manage its debts.
“We have not approached the central bank for loans to pay debt or salaries,” Edun explained. “The increase to ten percent is a fail-safe measure, providing flexibility to cover gaps between revenue inflows and expenses if necessary.”
