Muda Yusuf expresses concern over the fluctuating petrol prices set by Dangote Refinery and NNPCL, calling their approach worrisome for Nigeria’s energy market stability.
The “dramatic” difference in petrol prices between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) has been characterized as concerning by economist Muda Yusuf.
On Monday during an interview with The Morning Brief on Channels Television, he uttered this statement.
The drama, according to him, may potentially deter investors and influence the general opinion towards this innovative alternative.
Yusuf expressed concern regarding the portrayal of NNPCL’s expenses in procuring from Dangote, stating that discussing such matters openly may not be beneficial for the economy, public perception or investors’ trust.
According to the economist, due to the insufficient social safety net for Nigeria’s impoverished and at-risk population, completely eliminating petrol subsidies cannot yet be attempted.
Yusuf, who serves as the Managing Director of Centre for Promotion of Private Enterprise (CPPE), disclosed that despite the presidential announcement made on May 29, 2023 regarding subsidy removal; NNPCL still acknowledged bearing price discrepancies associated with imported petroleum commodities.
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He warned that leaving the issue of subsidy unresolved would worsen an already challenging situation and make life unbearable.
So far, the NNPCL has provided subsidies that have gradually decreased, which is acceptable. However, advocating for a total deregulation of the entire system in an economy without social safety nets would be inappropriate.
According to him, the public is facing economic strain and he further emphasized that the increase in petrol prices has aggravated their predicament.
According to the economist, we must acknowledge that the economy concerns people and their well-being; otherwise, our actions will push individuals close to their breaking point.
He believes that Nigeria cannot achieve complete deregulation because there is no safety net for its citizens to rely on.
The economist recommended import substitution as a means for the government to lower its dependency on foreign products in all areas of the economy.
He added that moving the pressure away would have a large effect on the exchange rate. He also stated that if imports were reduced and they looked inwardly, progress could be made.
