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Home > Subsidy
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FG Petroleum Imports Crashes 54% to $6.7bn After Improved Local Refining

by Nelson Ugwuagbo January 13, 2026
written by Nelson Ugwuagbo

Nigeria’s spending on the importation of petroleum products has fallen sharply by 54 per cent over the past two years, dropping from $14.58bn in the first nine months of 2023 to $6.71bn in the corresponding period of 2025, according to data from the Central Bank of Nigeria (CBN).

A review of the CBN’s Balance of Payments reports for 2023, 2024 and the third quarter of 2025 shows a steady year-on-year decline in fuel import bills, reflecting reduced foreign exchange outflows linked to petroleum product imports.

The figures indicate that fuel import costs declined from $14.58bn between January and September 2023 to $11.38bn in the same period of 2024, representing a reduction of $3.20bn or 21.9 per cent. The downward trend intensified in 2025, with imports falling further by $4.67bn, or 41 per cent, to $6.71bn within the first nine months of the year.

Overall, Nigeria spent $7.87bn less on refined petroleum product imports in the first nine months of 2025 compared with the corresponding period of 2023, highlighting a significant easing of pressure on foreign exchange outflows.

CBN data also showed a 41 per cent year-on-year decline in refined fuel imports by the third quarter of 2025, signaling early signs of import substitution as new and rehabilitated refineries begin to scale up operations.

The reduction in foreign exchange spending comes amid broader structural reforms and market adjustments aimed at strengthening Nigeria’s external reserves and stabilizing the naira.

For decades, Nigeria depended heavily on imports, particularly refined petroleum products due to limited domestic refining capacity, weak industrial output and underinvestment in critical infrastructure. This reliance made fuel imports one of the largest drains on the country’s foreign exchange earnings.

The removal of petrol subsidies in 2023 marked a major turning point, as higher pump prices reduced consumption and curtailed arbitrage-driven demand. Combined with tighter foreign exchange management by the CBN, the policy shift helped moderate import volumes and speculative FX demand linked to fuel imports.

Analysts also attribute the decline to the gradual expansion of domestic refining capacity in the downstream oil sector. Industry experts note that increased competition, particularly from the $20bn Dangote Petroleum Refinery in Lekki, has intensified pressure on fuel importers and reduced Nigeria’s dependence on imported refined products.

January 13, 2026 0 comments
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MCDAN
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MDCAN Decries Non-Implementation of Electricity Subsidy, Raises Concerns Over Health Sector

by Nelson Ugwuagbo May 7, 2025
written by Nelson Ugwuagbo

The Medical and Dental Consultants’ Association of Nigeria (MDCAN) has condemned the federal government’s failure to implement the approved 50 percent electricity subsidy for public hospitals, warning that the development is placing an additional burden on already overstretched health facilities serving indigent patients.

The association made its position known in a communique issued in Jos at the end of its National Executive Council meeting held in Katsina. MDCAN noted that despite the Federal Executive Council’s earlier approval of the subsidy, there has been no evidence of its implementation in hospitals across the country.

Signed by MDCAN President, Prof. Mohammad Aminu, and Secretary-General, Prof. Daiyabu Alhaji, the communique described the non-implementation as detrimental to healthcare delivery and called on the federal government to fulfill its promise without further delay.

The association also called for the immediate reversal of the consultant pharmacy cadre policy, arguing that its continued implementation could disrupt the orderliness of patient care and potentially lead to avoidable crises within the healthcare system.

On the issue of manpower development, MDCAN emphasized the importance of improved welfare packages to encourage medical doctors to take up academic roles in medical schools. This, it said, would support the federal government’s policy of doubling medical school enrolment and enhancing postgraduate training in teaching hospitals.

The association further urged the government to implement the Memorandum of Understanding addressing the demand for the universal applicability of the Consolidated Medical Salary Structure (CONMESS) across all government establishments. It also expressed concern over the persistent pay disparity between doctors working in federal institutions and those in state-owned hospitals. MDCAN pledged to continue engaging the Nigerian Governors’ Forum and individual state governors to address this issue and reduce the internal migration of doctors from state to federal health institutions.

Rising inflation and its impact on healthcare were also highlighted, with the association noting that the increasing cost of goods and services is further limiting access to medical care. MDCAN urged the government to consider reducing pump prices of petroleum products as a means of alleviating economic pressure on the population.

Finally, the association reiterated that the Fellowship of Medical Postgraduate Colleges remains the highest academic and professional qualification required for the training of doctors and for career progression at both undergraduate and postgraduate levels.

May 7, 2025 0 comments
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Tinubu vows to put stop to petrol pump price increase

by Andrew Mailafia August 15, 2023
written by Andrew Mailafia

President Bola Tinubu has vowed to stop the incessant increase in petrol pump price.

Speaking on Tuesday, August 15 in Abuja, the special adviser to the President on media and publicity, Ajuri Ngelale said that his principal has promised to put a halt to the increasing.

Lamenting that proposed strike by the NLC is premature, he pleadedl for all stakeholders in the country to hold their peace”We have heard very recently from the organised labour movement in the country with respect to their most recent threat.

“We believe that the threat was premature and that there is a need on all sides to ensure that fact-finding and diligence is done on what the current state of the downstream and midstream petroleum industry is before any threats or conclusions are arrived at or issued.”

Stressing Tinubu asssurance that thr NNPC Limited will not increase in the pump price of petroleum motor spirit anywhere in the country, Ngelale further emphasized that Tinubu is determined to maintain competitive tension within all sub-sectors of the petroleum industry.

“We repeat, the president affirms that there will be no increase in the pump price of petroleum motor spirit.”

August 15, 2023 0 comments
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