The value of imported Premium Motor Spirit, also known as petrol, jumped by 88.15 per cent to N3.97trillion in 2021, data obtained from the National Bureau of Statistics have revealed.
The NBS report shows that the value of petrol import rose by N1.86trillion or 88.15 per cent higher than the N2.11trillion worth of PMS imported in 2020.
The Nigerian National Petroleum Corporation is the sole importer of petrol into the country in recent years. Private marketers are yet to resume petrol importation due to a lack of full deregulation of petrol prices and access to foreign exchange at the official rate.
The NBS report further revealed that PMS, used vehicles and durum wheat topped the list of items imported by Nigeria in 2021, jointly accounting for 28.9 per cent of the total import bill recorded in the year under review.
Following the war between Russia and Ukraine, the prices of crude oil have increased significantly in the global market, which has also affected the landing cost of petrol, indicating that Nigeria will spend more this year.
According to the NBS report, Nigeria imported goods worth over N20.84trillion in 2021, indicating an increase of 64 per cent compared to the N12.7trillion recorded in the preceding year.
This is also the highest import bill recorded by Nigeria, based on available data.
Nigeria recorded a 58 per cent surge in total international trade to N39.75trillion in 2021 from N25.22trillion recorded in the previous year.
However, the significant surge in import bills led to a trade deficit of N1.94trillion, further placing Nigeria as a net importing nation.
A further breakdown of the report indicated that Nigeria exported crude oil worth N14.41trillion in 2021, which represents a 53 per cent increase compared to the N9.44trillion recorded in 2020, while also accounting for 76 per cent of Nigeria’s total export earnings.
A sum of N1.29trillion was spent on Nigeria’s importation of durum wheat in 2021, which accounts for 6.2 per cent of the total import bill in the year under review, and the second most imported item, by value.
According to the Central Bank of Nigeria, wheat is the third most widely consumed grain in the country after maize and rice.
Nigeria imported used vehicles worth N770.13bn in 2021, representing 3.7 per cent of the total import bill recorded in the year under review.
According to the NBS, the used vehicle popularly referred to as ‘Tokunbo’ is stated as used vehicles, with diesel or semi-diesel engines, of cylinder capacity >2500cc.
Aside from the increasing cost of petrol importation, the Federal Government has also incurred increasing cost of petrol subsidy, also known as under-recovery.
In 2021, the NNPC said fuel subsidy gulped N1.43trillion, although there was no record for under-recovery in January.
In February, March, April, May, and June 2021, under-recovery for PMS amounted to N25.37billion, N60.39bn, N61.96billion, N126.29bilion, and N164.33billion, respectively.
In July, August, September, October, November and December, the NNPC spent N103.28billion, N173.13billion, N149.28billion, N163billion, N131.4billion, and N270.83billion, respectively.
Economic and energy experts have continued to decry the rising cost of fuel subsidy to the Federal Government.
The World Bank and the International Monetary Fund have decried the Federal Government’s huge spending on petrol subsidy, urging the government to end the regime.
Although the Federal Government had planned to stop subsidising fuel subsidy by June 2022, the government later backtracked on the plan.
The PUNCH had reported that despite the increase in the cost of fuel subsidy, Nigerians have had to pay more for fuel and transportation over the years.
