Within 6 Months, Nigeria Has Already Spent N1.47tn On Petrol Importation– GCFRNG

Within 6 Months, Nigeria Has Already Spent N1.47tn On Petrol Importation– GCFRNG

Revenue from the importation of Premium Motor Spirit (petrol) in the first half of this year was N1.47tn, which is more than 73 per cent of what was done last year as a whole.

N1.47tn is about 86 per cent of the country’s total expenditure on petrol imports in 2019 as a whole, data obtained from the National Bureau of Statistics shows.

Petroleum imports rose to N782.46bn in the second quarter of this year, from N687.74bn spent on imports in Q1, according to NBS data.

The country spent N1.09tn on petrol imports in the first half of 2020, up from N766.06bn in H1 2019.

The data also showed that petrol was the highest imported list of goods in the country in Q2, accounting for 11.26 percent of total imports, up from 10.04 percent in the previous quarter.

The country spent N2.01tn on petrol imports by 2020, compared to N1.71tn last year.

PUNCH reported last week that the Nigerian Petroleum Corporation received N756.99bn in fuel assistance from January to July this year, citing data from the company.

This support, which the NNPC prefers to call ‘Value shortfall’ or ‘under-recovery’, resumed in January this year as the government allowed the fuel price to remain unchanged at N162-N165 per liter despite an increase in world oil prices.

The federal government withdrew its fuel subsidy subsidy in March 2020 after reducing the redemption price of this product to N125 per liter from N145 due to a significant reduction in oil prices.

NNPC, the only importer of fuel in the country in recent years, has been carrying out relief payments since its resumption.

The company generated a total of 6.3 billion liters in the first four months of 2021, according to data collected from its monthly report.

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In its latest monthly report, it said, “To ensure continued PMS growth and effective distribution across the country, the total PMS is 1.67 billion, converting to 55.79 million liters / day. for the month (April) in the deer. local.

“The company continues to monitor the diligence of PMS on a daily basis to achieve the distribution of oil and queue oil across the country.”

NNPC consumed 1.78 billion liters (57.49 million liters / day) in March from 1.41 billion liters (50.52 million liters / day) in February and 1.44 liters (46.30 million liters / day) in January.

Nigeria has always relied on imports of refined petroleum products while its suppliers have been struggling for years despite many reported repairs.

“Nigeria’s continued aid to oil imports (estimated at N5 billion a day), more than a year after trying to destabilize the low-oil sector, could be its biggest meltdown. , “analysts at Financial Derivatives Company Limited, led by Mr Bismarck Rewane. , said in their monthly financial report.

They said the International Monetary Fund, in a meeting with the Nigerian government on June 1-8, 2021, highlighted the need to end all aid withdrawals, especially in the area of ​​microfinance.

“Petroleum reforms, like our country’s legislature, has a declining financial support sector, and will be seen if workers and community members can be convinced that it is in the best interest of Nigerians, ”he said.

Analysts said that if the fuel subsidy was removed, the N2tn plan would be added to government funding from a third party government.

Nwebiisinka PUNCH.

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