Alhaji Aliko Dangote, Chairman of the Dangote Group, has expressed optimism that the significant reduction in diesel price to N1,200 will positively impact inflation in Nigeria.
During a briefing with journalists in Lagos following his visit to President Bola Tinubu for Eid-el-Fitr, Dangote highlighted recent economic progress, indicating the country’s positive trajectory.
Dangote emphasized that his refinery is now offering diesel at N1,200, below the market rate of N1,650, which he believes will contribute to lowering inflation in the country.
He stated, “I believe that we are on the right track. I believe Nigerians have been patient and that a lot of goodies will now come through. There’s quite a lot of improvement because if you look at it, one of the major issues that we’ve had was the naira devaluation that has gone very aggressively up to about N1,900.”
Dangote pointed out the impact of high diesel prices on commodity costs, mentioning that the refinery’s reduction in diesel price could help mitigate inflationary pressures. He expects to see improvement in inflation figures in the coming months.
Key Points:
- Nigeria’s current inflation rate remains high, standing at 31.70% as of February 2024, driven primarily by rising food prices and the removal of petrol subsidy.
- In response to inflationary pressures, the Central Bank of Nigeria (CBN) has implemented various monetary measures, including raising the Monetary Policy Rate (MPR) to 24.75%, the highest in decades.
- Dangote’s refinery has commenced distribution of diesel and aviation jet fuel domestically, a move aimed at reducing inflation and Nigeria’s reliance on imported petroleum products.
According to Dangote, the reduction in diesel price from N1,650 to N1,200 is expected to positively affect the cost of goods and services in Nigeria.
