Adewale Sanyaolu
Nigeria is to record a N4.3 trillion decline in petrol and aviation fuel consumption revenue in 2020 due to the coronavirus pandemic.
The revenue and products statistics loss figures are contained in the recently released Agusto & Co. 2020, Oil and Gas Downstream report, a copy of which was made available to Daily Sun.
This was even as the report ruled out the passage of the Petroleum Industry Governance Bill (PIGB) before the end of 2020, given Nigeria’s track record of weak policy implementation and the negative impact of the COVID- 19 pandemic on economic activities.
It lamented that the delay in the approval of the bill has brought about uncertainty for potential investors.
The report explained that the impact of the COVID-19 pandemic on economic activities in Nigeria had resulted in a decline in the consumption of petroleum products, adding that the lockdown restrictions implemented by the government as part of efforts to curtail the spread of the disease affected the consumption of petrol significantly.
It added that it expects the consumption of petroleum products particularly petrol and aviation fuel to decline to 27.2 billion litres in 2020 given the severely restricted travel and transportation activities during second and third quarters of the year.
According to the research firm’s estimates, total consumption of white fuels in Nigeria in 2019 stood at 28.1 billion litres, translating to a total revenue of N4.7 trillion.
‘‘Our research shows that 99 per cent of petroleum products consumed were imported as the country’s refineries operated below the installed capacities and sometimes down for months. For instance, no white fuels were produced at NNPC refineries for the seven months from June to December 2019 due to ongoing rehabilitation works. The impact of the COVID-19 pandemic on economic activities in Nigeria has resulted in a decline in the consumption of petroleum products.’’