Nigerians are grappling with a staggering annual expenditure of N327.05 billion on petrol and diesel, as revealed in the latest report by the National Bureau of Statistics (NBS).
This data, drawn from the Nigeria Residential Energy Demand-Side Survey Report 2024, underscores the financial burden that high fuel prices impose on households across the nation.
The report has indicated that the average household spends approximately N537,022 annually on fuel, highlighting the severe economic strain exacerbated by unreliable electricity supply from the national grid.
This erratic supply compelled many Nigerians to depend on fuel-powered generators, significantly increasing the demand for petrol and diesel.
According to the NBS, Nigeria consumes a total of 0.45 billion litres of petrol and diesel each year, with the average household utilizing about 733.98 litres. This reliance on fossil fuels is deeply intertwined with the country’s persistent energy challenges, where the national grid frequently fails to meet the electricity demands of both households and industries.
The situation is further compounded by recent increases in fuel prices, with the Nigerian National Petroleum Company (NNPC) Limited raising petrol prices three times between September and October, from N617 per litre to N1,037 per litre.
These increases came in the wake of NNPC's acknowledgment of unsustainable subsidy practices, revealing that petrol was previously being purchased from Dangote Refinery at N898.78 per litre but sold to marketers at a loss.
Experts have warned that unless Nigeria can develop more affordable and sustainable energy alternatives, the financial burden of high fuel costs will persist. While initiatives like the Presidential Compressed Natural Gas Initiative (PCNGi) and the Energy Transition Plan aim to promote cleaner energy options, the associated costs have hindered widespread adoption.
This report raises critical concerns regarding Nigeria’s transition to renewable energy sources, highlighting an urgent need for comprehensive strategies to alleviate the financial pressures on households while addressing the country’s ongoing energy crisis.
