Nigerians abandon cars as daily petrol consumption drops by 92%

The report by Channels Television reveals that petrol consumption stood at 4.5 million litres as of August 20, 2024, down from a staggering 60 million litres per day in May 2023.....Read Full Article>>

The drastic drop is attributed to President Tinubu’s removal of petrol subsidies on May 29, 2023, a policy move aimed at curbing the country’s soaring debt, which had reached ₦12 trillion in 10 years.

NMDPRA’s report also sheds light on the limited distribution of petrol, with only 16 of the 36 states in Nigeria receiving allocations. Niger state received the highest allocation, with 21 trucks, amounting to 940,000 litres daily.

Lagos followed closely with 12 trucks, amounting to 726,001 litres, while Kaduna also received 12 trucks, with 454,001 litres.

Other states, including Oyo, Kano, and Ondo, received significantly smaller quantities. Oyo and Kano received nine trucks each, while states such as Sokoto, Ogun, and Osun received three trucks or fewer. A few states, including Gombe, Benue, and Ekiti, received only one truck each.

The report highlights the unequal distribution of petrol across the nation, further exacerbating the challenges posed by the removal of fuel subsidies.

The removal of fuel subsidies triggered an immediate surge in petrol prices, rising from ₦195 per litre to approximately ₦1,300 per litre. This sharp increase has had widespread economic consequences, pushing Nigeria’s inflation rate to an almost three-decade high.

Inflation peaked at 34.19% in June 2024 before slightly declining to 32.7% in September 2024. According to recent data from the World Bank, the rising cost of living has plunged 129 million Nigerians into poverty. The World Bank report paints a grim picture of Nigeria’s economic situation.

The report reveals that poverty has escalated from 40.1% in 2018 to a staggering 56% in 2024. This means that over half of Nigeria’s population is now living in poverty.

“Since 2018, the share of Nigerians living below the national poverty line has risen sharply, resulting in approximately 129 million people now classified as poor,” the World Bank stated.

Rising inflation, stagnant economic growth, and an increasing population have contributed to Nigeria’s growing poverty levels.

“Real GDP per capita has not recovered to the level it was at prior to the oil price-induced recession in 2016. The COVID-19 pandemic compounded this drop in economic activity, leaving millions more vulnerable,” the report added.

The skyrocketing price of petrol has forced many Nigerians to abandon their cars.

A report by AFP details how the economic strain has led to lifestyle changes, with Nigerians turning to public transportation to cut costs. Emmanuel, a 72-year-old retired health worker, shared his experience with AFP.

“I parked my car at my son’s house. I use public transport now. It is not convenient, but it is what the economy demands,” he said.

Car dealerships have also felt the impact of the economic downturn. Many Nigerians are trading in their fuel-guzzling cars for more efficient vehicles.

“People are actually selling their big cars these days,” said Maji Abubakar, a car dealer in Abuja. However, the demand for such cars has significantly dwindled. “Even if you put them on the market, there isn’t much demand for them.”

Abubakar explained that the sale of cars with larger engines has plummeted.

“It has been more than a year since I sold a car with an eight-cylinder engine, and the major reason is the price of petrol,” he added.

President Tinubu’s decision to remove fuel subsidies was part of his administration’s effort to address Nigeria’s mounting debt burden. However, the consequences have been far-reaching.

While the policy aimed to curb excessive spending on subsidies, it has also placed immense pressure on millions of Nigerians, with many facing extreme economic hardship.

As petrol consumption plummets and inflation surges, the daily struggles of ordinary Nigerians highlight the challenging realities of the post-subsidy economy.

Many citizens continue to grapple with the rising cost of living, with no immediate end in sight.