Nigeria Spends N2tn Monthly on Imported Petrol and Diesel, Says President Tinubu

President Bola Tinubu has revealed that Nigeria spends a staggering N2 trillion monthly to import petrol and diesel, despite being the largest oil producer in Africa. In a recent nationwide broadcast, Tinubu emphasized that the country’s dependence on imported petroleum products is a result of its low refining capacity.

According to the President, Nigeria’s abundant oil and gas resources were being neglected, with the country relying heavily on oil-based petrol while ignoring its gas resources. To address this, Tinubu’s administration launched the Compressed Natural Gas (CNG) Initiative, which aims to power the transportation economy and reduce costs.

The CNG initiative will save the country over N2 trillion monthly, which will be used to import petrol and diesel, as well as free up resources for investment in healthcare and education. Additionally, the administration plans to distribute one million kits of extremely low or no cost to commercial vehicle owners, who currently consume 80% of the imported petrol and diesel.

The kits will enable these vehicle owners to switch to CNG, reducing transportation costs by approximately 60% and helping to curb inflation. The distribution of kits and the setting up of conversion centers across the country will be done in conjunction with the private sector.

Meanwhile, the Dangote refinery, which is expected to produce petrol, has been battling with crude challenges due to international oil companies’ refusal to supply crude to the facility. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has insisted on fuel importation, granting licenses to other marketers to import dirty fuel into Nigeria.

In response, NMDPRA Chief Executive Farouk Ahmed denied allegations that the authority was granting licenses to import dirty fuel, stating that the Dangote diesel had a higher sulphur content than the imported ones. Ahmed warned that Nigeria cannot rely heavily on the Dangote refinery for its fuel supply, saying that fuel importation will continue.

However, President Tinubu has intervened in the issue, ordering the supply of crude to Dangote in local currency, which is expected to save the country over $660 million monthly.