How Lower Fuel Price from Dangote Refinery will Reduce Nigeria’s Inflation

The Chairman of Dangote Group, Alhaji Aliko Dangote, has announced that the lower diesel prices offered by his refinery will play a crucial role in reducing the country’s inflation rate.

During a visit to President Bola Tinubu to celebrate Eid-El-Fitr in Lagos, Dangote revealed that his refinery has been selling diesel at a significantly reduced price of 1,200 naira per liter, compared to the previous market price of N1,650–N1,700.

This move is expected to have a substantial impact on the inflation rate, which currently stands at 31.7 percent, according to the National Bureau of Statistics.

The World Bank has also forecasted that Nigeria’s high inflation rate will remain a concern in 2024.

Dangote emphasized the importance of this initiative in bringing down the cost of locally produced goods, such as flour, which have been affected by high diesel prices.

He expressed optimism that this reduction in fuel costs will contribute to a decrease in overall inflation in the coming months.

Furthermore, the Dangote Group Chairman highlighted the improvement in the exchange rate, noting that the naira has strengthened from around N1,900 to the dollar to a more favorable rate of between N1,250 and N1,300.

He believes that this improvement, coupled with the lower fuel prices, will lead to a more stable economic environment and help to alleviate inflationary pressures.

Dangote called on industry leaders to work in partnership with the government to improve the lives of Nigerian citizens.

He stressed the importance of collaboration between the private sector and the government to ensure that the country’s economic growth benefits all Nigerians.

As Nigeria continues to grapple with economic challenges, the lower fuel prices from the Dangote Refinery offer a glimmer of hope for a more stable and prosperous future.