South-West Leads as Nigeria Spent N1.3tn on Petrol in June – Report

By Ada Samson, Abuja

New data has revealed the immense financial burden petrol consumption is placing on Nigerian households and businesses, with the country spending an estimated 1.3 trillion naira on Premium Motor Spirit in June alone.

The figures, released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), show a total of 1.44 billion litres were distributed across the nation that month. This high level of consumption underscores the country’s continued heavy reliance on petrol, not only for transportation but also for powering generators due to an unreliable national electricitypeop
The data paints a clear picture of a nation powered by its own spending. With an average pump price around 900 naira per litre, the financial toll is significant. The distribution of consumption was not even, revealing stark regional economic and demographic divides. The South-West geopolitical zone, the country’s economic powerhouse, emerged as the top-consuming region. It accounted for 452.9 million litres, valued at approximately 407.7 billion naira. Lagos State was the single largest consumer, using 205.7 million litres worth 185.1 billion naira.

It was followed closely by neighbouring Ogun State, which consumed 88.7 million litres, and Oyo State with 72.8 million litres. This concentration of demand highlights the intense commercial and vehicular activity in this region.

Other regions showed substantial but lower consumption levels. The North-Central zone, which includes the capital city Abuja, ranked second. The Federal Capital Territory itself received 77.5 million litres. The North-West consumed 230 million litres, led by Kano State. The South-South and North-East regions followed, with consumption of 224.9 million and 152.8 million litres respectively. The South-East recorded the lowest consumption nationwide at 132.7 million litres, valued at 119.6 billion naira. The figures for states like Jigawa, which recorded the lowest allocation of just 9.4 million litres, illustrate the vast economic disparities and varying levels of motorisation across Africa’s most populous nation.

This consumption pattern is a direct consequence of the removal of petrol subsidy two years ago. The policy shift, enacted by President Bola Tinubu at his inauguration in May 2023, caused prices to jump from around 200 naira per litre to their current levels. While the recent commencement of production at the massive Dangote refinery has been credited with applying some downward pressure on prices—selling at between 815 and 820 naira per litre—the overall cost to the nation remains colossal.

In a recent statement, Aliko Dangote, president of the Dangote Group, provided regional context, noting that many Nigerians are unaware they are paying roughly 55% of what neighbouring West African countries pay for petrol. “In neighbouring countries, the average price of petrol is around $1 per litre, which is N1,600. But here at our refinery, we’re selling at between N815 and N820,” he said. While this offers some perspective, for many Nigerians, the current prices are still a source of severe economic strain.

The high cost of petrol has a ripple effect across the entire economy, contributing significantly to inflation. The price of transporting goods and running small businesses has skyrocketed.