N1,200 Diesel Worth Discount will Cushion Nigeria’s Inflation – Dangote

The Chairman of Dangote Group, Alhaji Aliko Dangote, has mentioned that the numerous reduce within the diesel value to N1,200 could have a optimistic impact on inflation in Nigeria.

He disclosed this throughout a Wednesday briefing with journalists following his homage go to to President Bola Tinubu for Eid-el-Fitr in Lagos.

In response to Dangote, there was appreciable financial progress just lately, indicating that the nation is on the fitting path.

Dangote said that his refinery is providing diesel at N1,200, beneath the market charge of N1,650, and he believes this can contribute to reducing inflation within the nation.

“I imagine that we’re heading in the right direction. I imagine Nigerians have been affected person and I additionally imagine that a whole lot of goodies will now come by means of. There’s numerous enchancment as a result of should you have a look at it, one of many main points that we’ve had was the naira devaluation that has gone very aggressively as much as about N1,900.

“However proper now, we’re again to nearly N1,250, N1,300, which is an efficient reprieve. Various commodities went up. While you go to the market, for instance, one thing that we produce domestically like flour, individuals will cost you extra. Why? As a result of they’re paying very excessive diesel costs.

“Now, in our refinery, we began promoting diesel at about N1,200 as a substitute of N1,650 and I’m positive as we go alongside, issues will proceed to enhance quite a bit.

“If you happen to have a look at it now, if you end up shopping for N1,650 or N1,700 for a litre of diesel, and that one has been reduce off by nearly two-thirds, you at the moment are paying N1,200 for diesel.

“This will help to carry inflation down instantly. And I’m positive when the inflation figures are out for the following month, you’ll see that there’s numerous enchancment within the inflation charge,” Dangote mentioned.

Nigeria’s inflation charge at present stays very excessive, standing at 31.70 as of February 2024, in accordance with the Nationwide Bureau of Statistics (NBS).

The inflation was pushed primarily by rising meals costs and the removing of petrol subsidy by President Bola Tinubu in Could 2023.

In response, the Central Financial institution of Nigeria (CBN) has rolled out a number of financial measures to cut back inflationary stress within the nation, together with elevating the Financial Coverage Price (MPR) – the benchmark rate of interest – to 24.75%, the best in many years.

It’s hoped that the just lately opened Dangote refinery will assist Nigeria scale back inflation and dependency on imported petroleum merchandise, in addition to scale back the nation’s dependence on crude oil.