Following subsidy removal, Nigeria’s average daily fuel consumption collapsed from 66.7m litres to 47.5m litres

Key takeaways:

  • Nigeria’s daily fuel consumption peaked at 66.7 million litres in 2022.
  • Fuel consumption fell to 47.5 million litres in 2023 after the subsidy removal.
  • Consumption rebounded slightly to 51.8 million litres in 2024, but remains far below 2022 levels.
  • Between 2015 and 2022, consumption grew from 48.7m to 66.7m litres daily.
  • 2021 saw a notable increase to 61.9m litres, likely due to economic recovery post-COVID.
  • The lowest recorded consumption in the 10-year period was 47.5m litres in 2023.
  • The post-subsidy dip marks the largest single-year decline in consumption within the observed period.

Nigeria's fuel consumption trend over the past decade reveals a shift in 2023, triggered by the removal of fuel subsidy. From a peak of 66.7 million litres per day in 2022, average daily consumption fell sharply to 47.5 million litres in 2023—a 29% plunge. Although it rose slightly to 51.8 million litres in 2024, consumption remains well below previous highs, indicating a significant change in fuel usage habits nationwide.

This sudden drop reflects more than just a policy change—it highlights how economic incentives and price signals can rapidly alter consumer behaviour. Before subsidy removal, artificially low prices encouraged heavy consumption, masking the true demand. After the subsidy was lifted, the spike in pump prices made users more cost-conscious, leading to reduced usage.

Source:

NMPDRA and Energy in Africa

Period:

2015 - 2024
HTML code to embed chart
Want a bespoke report?
Reach out
Click to copy HTML embed code
Tags
Related Insights
Dangote Refinery led with a capacity of 650,000 barrels per day, representing almost 67% of Nigeria’s total functional refining capacity in early 2025
Key takeaways:
  • As of January to June 2025, Nigeria had nine operational refineries.
  • Dangote Petroleum Refinery is the largest, with a capacity of 650,000 barrels per day (bpd).
  • The total combined capacity of all functional refineries is almost 975,000 bpd.
  • Government-owned refineries, Warri, Kaduna, and Port Harcourt (old), collectively have a capacity of 295,000 bpd.
  • Out of 27 licensed refineries by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), only nine were operational during this period.
  • Other operational refineries such as Aradel, OPAC, Edo, Waltersmith, and Duport Midstream collectively have a capacity of 29,500 bpd.
Africa's crude oil producers: Only 4 countries ever made it past 1 million barrels a day since 1965
  • Only 4 African countries ever crossed 1 million b/d:   Libya, Nigeria, Algeria, and Angola.
  • Libya was Africa’s top producer in the 1970s and 2000s. At its peak, Libya did over 3 million b/d. No other African country has touched that.
  • Nigeria peaked in 2005 with 2.5 million b/d. But since then, it’s been unstable due to theft and pipeline issues.
  • Angola and Algeria have stayed around or above 1 million b/d for long periods, especially post-2000.
  • Despite oil discoveries, most African countries never got close to 1 million b/d: countries like Chad, Sudan, and Gabon, while some peaked under 500k.
After the drop in 2020 due to COVID-19, Oando Plc's profit before tax has surpassed pre-COVID-19 levels
Key Takeaways:
  • Despite recent gains, Oando Plc's earnings before tax have declined by 222% over the past decade.
  • Major losses occurred in 2019 and 2020, with a rebound in 2021 and 2023.
  • The company demonstrated remarkable resilience by recovering to ₦103 billion profit in 2023.
  • The earnings before tax in 2024 fell by 54% from 2023.
  • The year-on-year growth rate from 2015 to 2024 was shown to be negative despite recording ₦47.8 billion in 2024, as against -₦39.1 billion in 2015.
In 50+ years of oil production, the top spot has rotated among only 4 countries
  • Only 4 countries have ever topped global oil production since 1973: the US, USSR, Saudi Arabia, and Russia.
  • The USSR and Saudi Arabia each led for 17 years, while Russia held 9 and the U.S. reclaimed the top with 8 years, mostly after the shale boom.
  • Top producers have peaked at 9–12 million barrels/day, but the US once dropped as low as 5 million in the 2000s.
  • Nigeria peaked at 2.5 million barrels/day in 2005 and 2011, but never reached the top five.
  • Global crude oil production grew by over 26 million barrels per day between 1973 and 2023—an increase of nearly 47% over 50 years.
Oando Plc achieved a revenue increase of 412% between 2021 and 2024, while profits declined by 181% from 2022 to 2024, despite a positive profit after tax in 2024
Key takeaways:
  • Despite a profit after tax record of ₦65.5 billion in 2024, Oando Plc recorded a negative growth rate from 2015.
  • The company faced significant profit losses for several years, with notable improvements in 2021 and 2024.
  • Profit after tax fluctuated, with a notable improvement in 2024, reaching ₦65.49 million.
  • The year-on-year growth rate of 148% in 2022 indicates great market positioning.
  • From ₦477.1 billion in 2020 to ₦4.1 trillion in 2024, Oando Plc's revenues increased by 764%.
Seplat Energy's revenue surged by 137%, with profits increasing by 163% in 2024 compared to 2023
Key takeaways:
  • Seplat’s revenue steadily increased from ₦112.97 billion in 2015 to ₦1.65 trillion in 2024.
  • The difference between revenue and profit after tax in 2024 is notably broader than in previous years.
  • Profitability varied over the years, with losses recorded in 2016 and 2020 but consistent recoveries during other periods.
  • The year 2024 saw the company's peak revenue (₦1.65 trillion) and profit (₦214.25 billion).
POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form
A product of Techpoint Africa. All rights reserved