Expenditure on Fuel Import Increases by 46% in Q1 2024
Nigeria’s expenditure on fuel soared to N2.6 trillion in the first quarter of 2024, representing a 46% increase from the fourth quarter of 2023.
This data comes from the latest foreign trade report by the National Bureau of Statistics (NBS) for the first quarter of the year.
The cost of motor spirit imports was N1.8 trillion in the fourth quarter of 2023 and a combined N7.5 trillion for the entirety of 2023.
The increase in cost is linked to the depreciation of the exchange rate, which hit an all-time low at the end of the first quarter of 2024.
For example, in dollar terms, fuel imports amounted to approximately $2 billion, assuming a closing exchange rate of N1,309 as of March 2024.
This represents a significant drop in dollar terms from $4.4 billion in the corresponding period of 2023, where the NBS reported an import cost of N2 trillion, assuming the official exchange rate of N461/$1.
Data from the NBS reveals that Nigeria incurred a total of N4.39 trillion on the importation of “fuels and lubricants (processed)”, broken down into N2.6 trillion for motor spirit and N1.756 trillion for others.
This compares to N3.82 trillion incurred in the last quarter of 2023 and N2 trillion in the first quarter of 2023, indicating that the country is spending more on imports of this essential product required by Nigerians.
The data also shows that import spending on fuels and lubricants has more than quadrupled since 2019, rising from N2.5 trillion to over N11 trillion in 2023.
The increase in import costs can be attributed to exchange rate depreciation and a rise in demand for these products.
