NMDPRA logo
July 7, 2023
Nigeria’s average daily petrol consumption has fallen by 28% since President Bola Tinubu scrapped a popular but costly subsidy on the fuel at the end of May, data from the industry regulator shows.
A subsidy had kept prices cheap for decades in Africa’s biggest economy but it became increasingly expensive for the country – the government spent $10 billion last year – leading to wider deficits and driving up government debt.
Since the subsidy was ended, a black market in neighbouring Cameroon, Benin and Togo that relied on petrol smuggled from Nigeria has collapsed.
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 scrapping the petrol subsidy and from FX reforms, the World Bank said on June 27.
REUTERS
