$1.04bn Spent On Fuel Imports In 2021 – CBN

Data released by the Central Bank of Nigeria revealed that the quantity of foreign exchange used for the importation of petroleum products into the country fell to $1.04bn last year from $1.32bn in 2020.

Importation of fuel into the country remains a major user of foreign exchange as the refineries in the country are not functioning.

The nation’s forex reserves have been on a downward trend in recent months, falling to a low of $39.77bn on February 15, 2022, from $40.54bn at the end of last year.

The data released by the apex bank disclosed that $45.76m was utilised in January 2021 for fuel imports; $64.67m in February, and $142.31m in March.

Forex for fuel import transactions fell to $77.96m in April and $85.64m in May but rose to $86.42m in June.

The country utilised $83.73m in July and $103.70m in August for petroleum products importation.

The central bank further stated that $66.66m was used for fuel imports in September, $74.01m in October, $82.65m in November and $131.25m in December.

The Monetary Policy Committee last month noted the need to encourage the take-off of private refineries across the country to provide alternative competitive local supply sources and reduce the need for government intervention to manage fuel prices for domestic consumption.

It said, “Members noted the dwindling proceeds from oil sale, despite rising crude oil prices. They further noted the need to address the persistent reduction in remittance of oil revenue to the Consolidated Revenue Fund and urged the NNPC to urgently address this anomaly.

“The improved foreign exchange supply will thus support the bank’s demand management strategy in the foreign exchange market and consolidate macroeconomic performance, especially those that promote export, reduce dependence on import and reduce foreign exchange demand pressure.”

The NNPC which has been a major supplier of petroleum products in the country for more than four years in its latest monthly report wrote, “The corporation has continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the nation.”