According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), average daily gasoline usage in Nigeria has decreased by around 28% since President Bola Ahmed Tinubu declared the elimination of fuel subsidies.
The average daily gasoline consumption fell to 48.43 million liters (13 million gallons) in June, down from 66.9 million the previous month. according to latest NMDPRA data.
The gasoline regulating agency also stated that since the subsidy was eliminated, neighboring nations such as Cameroon, Benin, and Togo, which relied on smuggled petrol from Nigeria, had seen a drop in their illicit market.
In his inaugural speech on May 29, 2023, President Tinubu declared the elimination of fuel subsidies, which had kept gasoline prices low for decades.
The President acknowledged that the decision to eliminate fuel subsidies would put further strain on the masses, but he urged the country’s good people to bear the burden of the decision since it would “save our country from going under.”
The withdrawal of the fuel subsidy, which quadrupled the price of gasoline, has had an impact on nearly every sector of the economy, resulting in an increase in the prices of products and services across the country.
According to the World Bank, despite spending $2.41 billion on subsidies in the first five months, Nigeria might save up to $5.10 billion this year from fuel subsidy elimination and foreign exchange reforms.
In 2022, the Nigerian government spent at least $10 billion (£7.8 billion) on subsidies.
