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Nigeria Imported 6.5 Billion Litres of Fuel

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Petrol - Investors King
  • Nigeria Imported 6.5 Billion Litres of Fuel in Three Months

Between April and June this year, the country imported 6.5 billion litres of petroleum products, figures obtained from the National Bureau of Statistics have indicated.

The Petroleum Products Report, which was obtained on Friday in Abuja, showed that the country imported 4.79 billion litres of Premium Motor Spirits (petrol), and 1.11 billion litres of Automotive Gas Oil (diesel) during the period.

It showed that 43.79 million litres of Household Kerosene and 200.39 million litres of Aviation Turbine Kerosene were also imported into the country during the three-month period.

The report stated that the month of April recorded the highest volume of petrol imported into the country at 1.78 billion litres while the highest volume of diesel and household kerosene was imported in June.

It read in part, “The petroleum products importation statistics for Q2 reflected that 4.79 billion litres of the PMS, 1.11 billion litres of AGO, 43.79 million litres of the HHK and 200.39 million litres of the ATK were imported into the country.

“The month of April recorded the highest volume of the PMS imported into the country at 1.78 billion litres.”

A further analysis of the report showed that the country imported 1.78 billion litres of the PMS in April while May and June had 1.67 billion and 1.3 billion litres, respectively.

For diesel, 309.9 million litres were imported in April while May and June had 387.43 million and 408.15 million litres, respectively.

Aviation fuel had an import volume of 14.7 million litres in April while May and June recorded importation of 64.18 million and 121.5 million litres in that order.

In recent times, the importation of petroleum products has constituted a major source of pressure on the foreign exchange market.

The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, had while addressing journalists shortly after the Monetary Policy Committee meeting in April said the apex bank would support investors to build refineries.

He said the CBN would use the strength of its reserves, which he put then at $49.69bn to support the development of the nation’s refineries by supporting investors in that sector.

He said, “The Federal Government is encouraging private sector investors to come into refineries and what we do expect is when those private investors are coming into Nigeria to do business, if they are foreign, they will come with dollars and won’t need our dollars but if they are local and would want to import equipment of course they would need our dollars.

“We have a lot of dollars to allocate to them to bring in their equipment and I assure anyone who is interested in going into refineries business that if you have your licence, we’ll accord priority to you to import the equipment because we badly need it here.

“We all know that importation of petroleum products into the country constitutes a large portion of our import and as some point rising to about 25 per cent of our import volume. And we think of accelerating the process of investors going into refineries, it will further help to conserve our forex for importation of goods we cannot produce in Nigeria.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Federal Government Appeals to Electricity Union Amid Tariff Hike Tensions

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The Federal Government has made a direct appeal to the National Union of Electricity Employees (NUEE) amidst rising tensions over the recent hike in electricity tariffs.

The plea comes as the union continues to voice its dissatisfaction with the government’s decision to remove the subsidy on the tariff payable by Band A customers, warning of potential service withdrawal if the decision is not reversed.

In an interview with our correspondent, Adebiyi Adeyeye, the National President of the NUEE, reiterated the union’s stance against the increase, citing the impracticality of expecting their members to collect higher tariffs from customers without a proportional improvement in service.

Adeyeye emphasized the union’s concerns over the discrepancy between the promised 20 hours of daily power supply and the actual delivery, which he deemed “not feasible” due to existing infrastructural limitations.

The Federal Government, represented by Minister of Power Adebayo Adelabu, called for understanding and patience from the union. Speaking through his media aide, Bolaji Tunji, Adelabu assured that efforts were being made to improve electricity supply across the nation. He emphasized the necessity of these changes for the country’s long-term economic growth and job creation.

“We just want to appeal to the labor union to understand the context of these changes. It’s about working together to address the underlying issues within the power sector. It is not anybody’s joy that there are blackouts all the time,” Adelabu stated.

He added that the steps being taken would ultimately benefit the economy and urged the union to bear with the government during this transitional phase.

Adeyeye maintained that the union’s primary objective is to safeguard the well-being of its members, who are facing increased threats due to the tariff hike.

He stressed the need for immediate action from the government to resolve the issues, stating that the union would withdraw its services if necessary.

As the standoff continues, the public watches with interest, hoping for a resolution that will avoid disruptions to the country’s power supply and maintain a harmonious relationship between the government and electricity workers.

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Minister of Power Pledges 6,000 Megawatts Electricity Generation in Six Months

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Adebayo Adelabu has made a bold pledge to ramp up electricity generation to 6,000 megawatts (MW) within the next six months.

This announcement comes amidst ongoing efforts to tackle the longstanding issue of inadequate power supply that has plagued the country for years.

During an appearance on Channel Television’s Politics Today program, Adelabu said the government is committed to resolving the issues hindering the power sector’s efficiency.

He expressed confidence in the administration’s ability to overcome the challenges and deliver tangible results to the Nigerian populace.

Currently, Nigeria generates and transmits over 4,000MW of electricity with distribution bottlenecks being identified as a major obstacle.

Adelabu assured that steps are being taken to address these distribution challenges and ensure that the generated power reaches consumers across the country effectively.

The minister highlighted that the government has been proactive in seeking the expertise of professionals and engaging stakeholders to identify the root causes of the power sector’s problems and devise appropriate solutions.

Adelabu acknowledged the existing gap between Nigeria’s installed capacity of 13,000MW and the actual generation output, attributing it to various factors that have impeded optimal performance.

Despite these challenges, he expressed optimism that the government’s initiatives would lead to a substantial increase in electricity generation, marking a significant milestone in Nigeria’s energy sector.

Addressing concerns about the recent decline in power generation due to low gas supply, Adelabu assured Nigerians that measures are being taken to rectify the situation.

He acknowledged the impact of power outages on citizens’ daily lives and reiterated the government’s commitment to providing stable electricity supply within the stipulated timeframe.

The Minister’s assurance of achieving 6,000MW of electricity generation in the next six months comes as a ray of hope for millions of Nigerians who have long endured the consequences of inadequate power supply.

With ongoing reforms and targeted interventions, there is optimism that Nigeria’s power sector will witness a transformative change, ushering in an era of improved access to electricity for all citizens.

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Nigeria’s Economic Woes to Drag Down Sub-Saharan Growth, World Bank Forecasts

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The World Bank’s latest report on the economic outlook for Western and Central Africa has highlighted Nigeria’s sluggish economic growth as a significant factor impeding the sub-region’s overall performance.

According to the report, while economic activities in the region are expected to increase, Nigeria’s lower-than-average growth trajectory will act as a hindrance to broader economic expansion.

The report indicates that economic activity in Western and Central Africa is set to rise from 3.2 percent in 2023 to 3.7 percent in 2024 and further accelerate to 4.2 percent in 2025–2026.

However, Nigeria’s growth, projected at 3.3 percent in 2024 and 3.6 percent in 2025–2026, falls below the sub-region’s average.

The World Bank underscores the importance of macroeconomic and fiscal reforms in Nigeria, which it anticipates will gradually yield results.

It expects the oil sector to stabilize with a recovery in production and slightly lower prices, contributing to a more stable macroeconomic environment.

Despite these measures, the report emphasizes the need for structural reforms to foster higher growth rates.

In contrast, economic activities in the West African Economic and Monetary Union are projected to increase significantly, with growth rates of 5.9 percent in 2024 and 6.2 percent in 2025.

Solid performances from countries like Benin, Côte d’Ivoire, Niger, and Senegal are cited as key drivers of growth in the region.

The report also highlights the importance of monetary policy adjustments and reforms in supporting economic growth.

For instance, a more accommodative monetary policy by the Central Bank of West African States is expected to bolster private consumption in Côte d’Ivoire.

Also, investments in sectors such as agriculture, manufacturing, and telecommunications are anticipated to increase due to improvements in the business environment.

However, Nigeria continues to grapple with multidimensional poverty as highlighted by the National Bureau of Statistics.

Over half of Nigeria’s population is considered multidimensionally poor, with rural areas disproportionately affected. The World Bank underscores the need for concerted efforts to address poverty and inequality in the country.

Sub-Saharan Africa as a whole faces challenges in deepening and lengthening economic growth. Despite recent progress, growth remains volatile, and poverty rates remain high.

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