Nigerians spend N327.05bn annually on petrol, diesel – NBS report

Nigerians spend a staggering N327.05 billion annually on petrol and diesel, according to a new report by the National Bureau of Statistics (NBS).

The report, which was the latest Nigeria Residential Energy Demand-Side Survey Report 2024 shows fresh insight into the nation’s energy consumption patterns.

The report reveals that the average annual expenditure on petrol and diesel per household stands at N537,022.

This figure highlights the financial strain many Nigerians face as they grapple with high fuel costs, a situation exacerbated by the erratic electricity supply from the national grid, which forces many to rely on generators powered by petrol and diesel.

NBS data also shows that the total quantity of petrol and diesel consumed annually amounts to 0.45 billion litres, with the average household consuming 733.98 litres over the same period.

Nigeria’s reliance on petrol and diesel is intricately linked to the country’s long-standing energy challenges.

With the national grid frequently collapsing and unable to meet the electricity needs of households and industries, many have resorted to self-generation through fuel-powered generators. This has created a massive demand for petrol and diesel, which has only intensified in the face of Nigeria’s growing population and economic activities.

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According to experts, the growing cost of petrol and diesel will continue to weigh heavily on Nigerian households unless more affordable, sustainable energy options are made available.

Between September and October, the Nigerian National Petroleum Company (NNPC) Limited increased the price of petrol three times, from N617/litre to N1,037/litre.

In September, the NNPC stated that it was purchasing petrol from Dangote Refinery at N898.78 per litre and selling it to marketers at N765.99 per litre, effectively absorbing a subsidy of nearly N133 per litre. However, the company indicated that this arrangement is no longer sustainable.

The findings in the report also raise further concerns about Nigeria’s ability to transition towards cleaner energy alternatives.

While the federal government has rolled out various policies including the Presidential Compressed Natural Gas Initiative (PCNGi) aimed at promoting the use of CNG, and the Energy Transition Plan to encourage the adoption of solar energy, the high costs associated with switching to these alternatives have hindered widespread adoption.