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
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