NEITI Investigates Actual Petrol Consumption in Nigeria
By Adedapo Adesanya
The Nigerian Extractive Industries Transparency Initiative (NEITI) is set to provide data on the actual volume of Premium Motor Spirit (PMS) consumption in the country.
Mr Orji Ogbonnaya Orji, the Executive Secretary of NEITI, made this known at a consultative forum with the Civil Society Organisations (CSOs) and the media on Tuesday in Abuja.
Mr Orji said it would begin providing baseline information and data on the utilisation and management of the 13 per cent derivation paid to oil-producing states in the country.
According to him, the baseline study is important as it will determine if the states are getting their dues and if the government is paying what it should.
This, he said, would provide critical data required to monitor how much is being allocated monthly to oil-producing states and their managements.
There have been disagreements about the accurate data consumption of the commodity in the country, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) last month saying the country’s daily consumption of petrol has drastically reduced following the removal of subsidy by the Federal Government.
Prior to scrapping petrol subsidies, petrol consumption was officially said to be around 65 million litres daily, but the bulk of that reportedly was smuggled outside the country. Since its removal, consumption has fallen by a third, according to figures from the government regulator.
The agency said the country’s daily consumption figure now stands at 46.38 million litres.
“We are also commissioning a study on the actual PMS consumption in Nigeria, an independent report to establish the quantity of fuel Nigeria consumes and its costs; it will be used to manage the sector as subsidy is removed,” Mr Orji said.
According to figures by the National Bureau of Statistics (NBS), the 13 per cent derivation fund distributed among the nine oil-producing states in Nigeria rose by 115.5 per cent to N970.2 billion in 2022, following improvement in the price of crude oil in 2022.
The civil society representatives also lauded the move and thereby described it as ‘revolutionary’.
They, however, suggested that credible civil society organisations and states that have set up commissions on the fund should be included in the study.
They further recommended other possible reports to gather, especially on artisanal refining.