Govt’s import bill on petroleum products hits N1.8tr in nine months

The Federal Government spent N1.82 trillion on importation of petroleum products between January and September last year, according to the National Bureau of Statistics (NBS).NBS disclosed in its petroleum products import statistics 2010 to 2015 released
recently that the country imported N1.4 trillion worth of Premium Motor Spirit (PMS) during the period under review.

Automotive Gas Oil (AGO) gulped N305.2 billion while N118.7 was spent on Household Kerosene (HHK).

The country imported N109.1 billion worth of PMS in January 2015; N116 billion in February; N209 billion in March; N178 billion in April; N188 billion in May; N147 billion in June; N182 billion in July; N185 billion in August; and N133 billion in September.

Also, about N29 billion worth of AGO was imported into the country in January 2015; N41.9 billion in February; N21.2 billion in March; N26.1 billion in April; N36.8 billion in May; N45.9 billion in June; N50.3 billion in July; N30.4 billion in August; and N22.5billion in September.

The amount of kerosene imported into the country in January stood at N17.8 billion; N11.4 billion in February; N11.2 billion in March; N21.8 billion in April; N26.1 billion in May; N4.8 billion in June; N2.6 billion in July; N6.7 billion in August; and N15.9 billion in September.

The agency noted that the volume of products discharged within a month was based on actual quantities discharged during the month.

It added that average landing cost per month was the average landing cost of the product during the period of discharged. “The value of the product is estimated value based on the average landing cost of the product as at the month of discharge.

Meanwhile, the declining crude oil prices may have affected the country’s capital importation in 2015.

According to NBS in its capital importation report for third and fourth quarter of 2015, the level of capital imported between 2012 and 2014 was markedly higher than the year under review.

This, it said, may have been due to some external factors, such as the globally low interest rates triggering a search for higher yields from investors over this period.

It added that the drop in 2015 may be partly a result of these factors unwinding, as well as the tougher economic environment in Nigeria resulting from the effect the lower oil price has had on export earnings. Furthermore, the widely anticipated decision to raise interest rates in the United States may have played a part in the drop of capital inflows in the final quarter.

It stated: “The total value of capital imported into Nigeria in the Third quarter of 2015 was $2.7 billion, up 3.07 per cent from the preceding quarter.

“This was followed by a total of $1.5 billion in the fourth quarter, a decline of 43.34 per cent from levels recorded in the previous quarter. The total for 2015 was recorded at $9.6 billion. This is represent a 53.53 per cent fall on the previous year, when the total was $20.7 billion. Each consecutive quarter of 2015 saw a larger annual fall than the previous; in the third and fourth quarter, capital inflows were respectively 58.00 per cent and 65.40 per cent lower than in the same quarters of 2014”.


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