…says current fuel figures are incorrect
The Nigerian Extractives Industries Transparency Initiative (NEITI) has announced its intention to conduct a study on the accurate fuel consumption data in the country.
Dr. Orji Ogbonnaya Orji, the Executive Secretary, and National Coordinator of NEITI, made this announcement during the Stakeholders Validation Workshop on the 2022 Annual Progress Report (APR) held at NEITI House in Abuja on Monday, June 20.
Dr. Orji emphasised that the current fuel consumption figures in Nigeria are incorrect, and it is crucial to obtain accurate data, especially now that the fuel subsidy regime has been eliminated. NEITI recognizes the necessity of having precise figures to inform policy decisions and ensure transparency in the fuel sector.
He said: “We believe that the figures that are being thrown up as daily consumption of PMS (fuel) in Nigeria are not very correct. We think we need to have an empirical figure and that is why NEITI is commissioning a study on the actual PMS consumption in Nigeria.
“We have every reason to believe that the figure may be less than what is being projected and the removal of subsidy has also removed all the incentives for hiking this figure in a manner that lacks empirical and logical reason.”
Dr. Orji highlighted the fact that NEITI has been pushing for the removal of fuel subsidies and now that it has been removed, the oil sector activities will become more transparent instead of being shrouded in secrecy and there should not be a turnaround in the removal of fuel subsidies in the country.
He said: “The removal of subsidy will remove a lot of opacity and suspicion in budgeting based on estimates. That is why subsidy removal is a very fundamental policy shift that needs to be sustained.
“For a very long time, my disposition has been for the removal of subsidy. And this government, right from day one, has taken that bold step. There shouldn’t be any going back.
“We should move forward from there and then put in place a robust arrangement that will show a clear departure from the way and manner we have operated under subsidy. Nigerians want to see what will change when the subsidy is no more.
“And we have highlighted this because we know that subsidies put a lot of impediments on transparency and accountability in the management of revenues from the oil and gas industry over the years.”
Some industry operators as well as observers have said that it is impossible for Nigeria to consume up to 60 to 70 million liters of fuel daily. Meanwhile, prior to the removal of fuel subsidy, figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have shown those same figures as the country’s daily fuel consumption.
On the other hand, some operators believe the figures to be factual because of the number of fuel-powered generators in the country’s households and places of business as well as the uptick in the number of vehicles under the transportation as well as e-commerce ecosystem in the last five to seven years.Follow us on social media