IMF Doubts the Authenticity of Nigeria’s 66m Litres Daily Fuel Consumption Claim

The International Monetary Fund (IMF) has raised doubt over the veracity of Nigeria’s daily fuel consumption numbers released by the Nigeria National Petroleum Commission (NNPC).

NNPC has consistently claimed that Nigeria uses about 66 million litres of fuel every day. 

The multilateral financial institution further called for a comprehensive audit of the Nigeria National Petroleum Company. 

In a publication titled “2022 Article 1V mission in Nigeria” released by the IMF, the Fund noted that there seem to be some inconsistencies with the annual financial report of the government-owned petroleum company. 

The Fund, therefore, recommended a “closer look at the nature of NNPC’s financial commitments to the government and the costing details of the fuel subsidy, including through a financial audit”.

It would be recalled that Investors King reported in September 2022 that NNPC claimed Nigeria now uses up to 66 million litres of petrol per day, despite lifting about 98 million litres of fuel per day. A situation the Nigerian Customs Service (NCS) described as unreasonable.

According to the Customs comptroller-general, Hameed Ali, during a session with the House of Representatives Committee on Finance, it makes no sense that NNPC lifts 98 million liters of fuel daily when Nigerians used 66 million litres of fuel a day.

“If we are consuming 60 million liters of PMS per day by the corporation computation, why would you allow the release of 98 million liters per day? If you know this is our consumption, why would you allow that release?” Mr. Ali asked.

Meanwhile, the IMF also advised the Nigerian government to implement a stronger cash management policy to plug various loopholes and entrench fiscal responsibility. 

The multilateral financial institutions added that such measures will assist the government to reduce the fiscal deficit, reduce borrowing and enhance service delivery. 

“Stronger cash management and better coordination among key public institutions is needed to increase the realism of budgetary forecasts and reduce reliance on central bank overdrafts,” IMF noted.