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NAIRA DEVALUATION WORSENS COST OF FUEL IMPORTATION AS NIGERIA SPENT N5.8TN IN SIX MONTHS
Data released by the National Bureau of Statistics has shown that petroleum worth N5.8 trillion was imported into the country in the first six months of 2024, representing first and second quarter of the year.
A review shows that in the first quarter of the year, N2.6 trillion was spent on fuel importation, while N3.2 trillion was spent in the second quarter.
This development comes amid the fall of naira which has made importation more expensive.
For instance, the average exchange rate in January 2024 stood at N911.8, it however grew to N1383 in February, and N1528 in March. In April, it went down to N1272 and rose again in May to N1434 and N1489 in June.
As of May 2023, when Tinubu emerged President, dollar to naira exchange rate stood at N462.5.
The higher cost of dollar to naira means that Nigeria continues to spend more on importation, even with the same quantity of products.
Nigeria also suffers from non-functional refineries, with its four refineries failing to function, leaving Nigerians at the mercy of fuel importation.
The government is relying on the newly built Dangote Refinery and the refurbishment being done at government-owned refineries will reduce the bleeding to excessive importation.
