As Nigerians face growing concerns over escalating petrol prices and ongoing fuel scarcity, Ejes Gist News provides the latest updates, including reactions from citizens, projections, and government responses.
Petrol Prices Could Reach ₦1,200/Litre, Naira May Depreciate to ₦1,550/$ – Economist Bismarck Rewane
In a startling projection, the Chief Executive Officer of Financial Derivatives Company Limited, Mr. Bismarck Rewane, has warned that petrol prices in Nigeria could soar to ₦1,200 per litre. This forecast comes amidst fears of further economic instability.
During the Lagos Business School’s November session, titled Democracy on Trial! Trump – Going Back to the Future, Rewane shared his economic outlook for the country. He noted that the Naira could depreciate further, potentially trading at ₦1,550 per US dollar by January 2025.
Rewane’s predictions are based on an anticipated decline in global oil prices, with Brent crude potentially trading at $70 per barrel by December. He argued that the Naira’s current value does not align with economic fundamentals and could experience a 30% adjustment within the next year.
Dangote Refinery Begins Fuel Exports Amid Domestic Price Hike
Despite rising petrol prices in Nigeria, Dangote Refinery is set to commence fuel exports to several African countries, including South Africa, Angola, and Namibia. The 650,000-barrel-per-day refinery, located in Lekki, is reportedly in advanced discussions for supply agreements.
Sources indicate that other nations, such as Niger Republic, Chad, Burkina Faso, and the Central African Republic, are also exploring fuel import deals with the refinery. Ghana, which currently spends approximately $400 million monthly on fuel imports from Europe, has expressed interest in purchasing refined products from Dangote.
Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, believes this partnership could reduce Ghana’s dependence on European imports and stabilize local fuel markets.
Senator Musa Praises Tinubu’s Subsidy Removal Policy
Senator Sani Musa of Niger East Senatorial District has commended President Bola Tinubu’s decision to eliminate the fuel subsidy, describing it as the most beneficial policy for Nigeria in recent times.
Speaking in an interview with Channels TV, Musa argued that the removal of fuel subsidies, announced by President Tinubu on May 29, 2023, was a necessary move. The policy led to a steep increase in petrol prices and inflation, causing a ripple effect on the cost of goods and services nationwide.
Musa defended the decision, stating, “The President acted in the best interest of the nation. We must ensure that the policy’s implementation does not negatively impact Nigerians.”
With economic forecasts suggesting further depreciation of the Naira and a likely increase in petrol prices, many Nigerians are bracing for tougher times ahead. As discussions continue about potential fuel supply agreements with Dangote Refinery and the government’s stance on subsidy removal, citizens await concrete measures to address inflation and fuel scarcity challenges.
