Nigerians collectively spend a staggering N327.05 billion each year on petrol and diesel, according to the latest report from the National Bureau of Statistics (NBS).
The findings, released in the Nigeria Residential Energy Demand-Side Survey Report 2024, offer a detailed look at how energy expenses weigh heavily on households due to insufficient electricity supply from the national grid.
On average, each Nigerian household spends about N537,022 annually on petrol and diesel to power generators and meet daily energy needs.
This expenditure reveals the depth of financial pressure as people increasingly rely on fuel-powered generators to offset erratic electricity.
Households consume approximately 733.98 litres of fuel annually, leading to a nationwide consumption total of 0.45 billion litres.
The ongoing energy challenges have cemented Nigeria’s dependence on petrol and diesel, with frequent grid failures driving families and businesses to seek alternative energy.
Analysts note that Nigeria’s energy crisis, with recurrent grid collapses and unpredictable power supply, compels consumers to shoulder the high costs of self-generated electricity.
The impact of the soaring costs is further underscored by recent petrol price hikes. Between September and October, the Nigerian National Petroleum Company (NNPC) Limited raised fuel prices three times, from N617 per litre to a peak of N1,037 per litre.
While the NNPC previously absorbed some of the fuel costs to shield consumers, it recently acknowledged that subsidizing petrol at nearly N133 per litre from Dangote Refinery is unsustainable.
The national fuel scarcity, coupled with high market prices, has intensified economic pressures on citizens.
The report highlighted the need for affordable and sustainable energy solutions as fuel costs continue to rise.
While Nigeria has policies promoting cleaner energy, such as the Presidential Compressed Natural Gas Initiative (PCNGi) for CNG usage and the Energy Transition Plan for solar energy adoption, the alternatives remain costly and challenging to implement widely.
Policymakers and experts agree that achieving a more stable and sustainable energy mix could alleviate Nigeria’s reliance on costly fuel consumption, reducing both financial burdens and environmental impact.
Meanwhile, the House of Representatives has called for an immediate reversal of the recent increase in fuel prices.
The resolution passed on Wednesday, follows mounting concerns over the rising costs of petrol and cooking gas, which lawmakers argue threaten the livelihoods of millions across the country.
The motion, spearheaded by Deputy Minority Leader Aliyu Madaki and supported by 111 other members, stressed the severe impact of these price hikes on ordinary citizens.
