How subsidy removal impacts Nigeria's petrol consumption?

A recent report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority revealed that petrol consumption in the country dropped to 48.4 million litres in June. This significant decline has sparked discussions on the effects of the subsidy removal on local petrol consumption. Ayodele Oni, a Partner at Bloomfield Law Practice, shared his insights on the matter during an interview on CNBC Africa. According to Oni, the reduction in petrol consumption was not surprising, as experts had previously suggested that actual usage was lower than the reported figures due to smuggling activities. He emphasized that the decrease could be attributed to a combination of reduced usage by consumers and a decline in smuggling activities. Oni highlighted the need for accurate data collection and analysis in the oil and gas sector to address challenges related to tracking consumption and curbing illicit activities. Furthermore, he touched upon the upcoming operations of the Dangote refinery and the government's role in driving the success of refineries in the country. With the refinery set to commence operations in the coming years, Oni expressed optimism about the potential positive impact on Nigeria's economy and trade balance. He emphasized the importance of political will in ensuring the success of refinery projects and commended the government's recent steps towards economic reforms, such as unifying exchange rates and removing fuel subsidies. As Nigeria navigates the changing landscape of its petroleum sector, stakeholders are closely monitoring developments to assess the implications for the nation's energy security and economic growth.