From Adanna Nnamani, Abuja
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has disclosed that Nigeria currently spends $600 million each month on fuel imports.
Edun, who made these remarks during an interview on AIT, attributed this substantial import bill to neighbouring countries, as far away as Central Africa, taking advantage of Nigeria’s fuel imports.
The Minister clarified that this situation is why President Bola Tinubu decided to eliminate the fuel subsidy, as the country lacks accurate data on its internal fuel consumption. He emphasised that the nation must take decisive action to address this issue, as it hinders economic growth.
Edun highlighted that the welfare of the people, especially the vulnerable, is a top priority for the government. He pointed out that one of the key areas of focus is ensuring the availability and affordability of food.
Additionally, the Finance Minister clarified that the ₦570 billion fund allocated to state governments was initiated in December of last year.
He said, “The fuel subsidy was removed on 29 May 2023, by Mr President, and at that time, the poorest 40 per cent were only getting four per cent of the value, and basically, they were not benefitting at all. So it was going to [benefit] just a few.
“Another point that I think is important is that nobody knows the [actual] consumption of petroleum in Nigeria. We know we spend $600 million to import fuel every month, but the issue here is that all the neighbouring countries are benefitting.
“So we are buying not just for Nigeria, we are buying for countries to the east, almost as far as Central Africa. We are buying for countries to the north, and we are buying for countries to the west. And so we have to ask ourselves, as Nigerians, how long do we want to do that for? And that is the key issue regarding petroleum pricing.”
“[The ₦570 billion] actually refers to a reimbursement that [the states] received from December last year onwards, and it was a reimbursement, I think, under the COVID financing protocol. But the point is that the states have received more money. Mr President has been charged to ensure food production in the states.”
To mitigate inflation and stabilise the economy, he noted that there is a concerted effort to ensure the availability of homegrown food in the country. He reassured the public that this approach would not harm local farmers, as imports would only be allowed after local supplies have been fully depleted.
“In the short term, apart from what is being distributed from reserves, there is a window that has been opened for importation because the commitment of Mr President is to drive down those prices now and make food available now.
“So, one of the conditions for this importation will be that everything available locally in the markets or with the millers and so forth has been taken up. We will have auditors that will check that,” he added.