Nigeria adapts to end of fuel subsidies
The withdrawal of discounts has already severely impacted domestic product demand and bolstered long-stalled refinery refurbishment projects
Nigeria relies heavily on imports for most of its refined fuels due to the prolonged neglect that led to the closure of local refineries. Until the removal of subsidies this year, the cost of providing discounted fuels was enormous. NNPC expended a staggering NGN4.39t ($5.3b) on petroleum subsidies in 2022, equating to an expenditure of more than NGN365b per month. At the same time, although the country’s oil production is gradually rebounding, it continues to be hindered by crude theft and pipeline vandalism. Statistics indicate that 48.6% of Nigerians relied on generators as of December 2021, although this figure decreased to 40% in 2022, representing approximately 60m people, according to
Also in this section
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields