Aliko Dangote, Africa’s wealthiest businessman, has recommended lowering petrol prices to tackle rising inflation in Nigeria.
Dangote suggests lowering the price of diesel to N1,200 a liter (roughly $1), highlighting a potential path to alleviating the financial burden felt by millions of Nigerians.
Diesel is vital to Nigeria’s economy, particularly in the transportation and logistics industries. It is an important component in the distribution of goods throughout the country, including necessities like food and medical supplies. Currently, rising diesel prices greatly increase the cost of goods, driving inflation.
Dangote’s plan comes as Nigeria faces an inflation rate of 31.70 percent as of February 2024, according to the National Bureau of Statistics. The elimination of petrol subsidies in May 2023 exacerbated the situation, necessitating an urgent need for actions to stabilize the economy.
During a post-Eid al-Fitr meeting with President Bola Tinubu, Dangote shared his vision for Nigeria’s economic growth. With an estimated net worth of $15.6 billion, he is not only an important figure in the economy, but also a significant actor in prospective policy adjustments that could promote national stability.
Dangote seeks to directly influence the reduction of transportation and logistics expenses by offering fuel at a reduced price of N1,200, which is much lower than the current market pricing of N1,650. This reduction could result in lower consumer goods prices, alleviating the inflationary pressures that have afflicted the population.
The Dangote Oil Refinery, worth $20.5 billion, is a beacon of hope for lessening Nigeria’s reliance on foreign gasoline. The world’s largest single-train refinery can process 650,000 barrels per day. This plant not only intends to meet local demands, but also to help Nigeria achieve energy independence.
The start of diesel sales at lower prices from this refinery could serve as a foundation for larger economic changes. Dangote’s initiative to establish an independent oil trading branch demonstrates a strategy change toward improving efficiency in petroleum product supply chain management.
