Nigerians can expect a sigh of relief on the inflation front, according to Africa’s richest man, Aliko Dangote. In a recent chat with journalists, Dangote pointed to the significant reduction in diesel pump prices as a key driver for this positive outlook.
Speaking after paying Eid-el-Fitr homage to President Bola Tinubu in Lagos, Dangote expressed optimism about the country’s economic trajectory. He acknowledged Nigerians’ patience during challenging times and hinted at a period of improvement.
“There’s quite a lot of improvement,” Dangote said. One of the major issues we’ve faced has been the aggressive devaluation of the naira, which went up to around 1,900 naira to the dollar. However, we’re now seeing a positive correction, with the exchange rate hovering between 1,250 and 1,300 naira, which is a welcome reprieve.
Dangote linked the naira devaluation to rising commodity prices, particularly for locally produced goods like flour. Businesses, he explained, were forced to hike prices due to the high cost of diesel, a crucial fuel for transportation and production.
However, Dangote offered a glimmer of hope. He revealed that his own Dangote Refinery has been selling diesel at a significantly discounted rate – 1,200 naira per litre compared to the previous market price of 1,650 – 1,700 naira. He believes this trend will continue, leading to further economic benefits.
“Think about it,” Dangote elaborated. “Before, you were paying 1,650 or 1,700 naira for a litre of diesel. Now, that price has been cut down by almost two-thirds. You’re paying 1,200 naira! Even though global crude oil prices are rising, I don’t expect the local price to go much higher than this. It might even decrease slightly.”
The impact of lower diesel prices, according to Dangote, is far-reaching. “For businesses transporting locally produced goods, the difference is substantial,” he explained. “Previously, they were paying 1,650 naira, but now they’re paying only 1,200 naira – a two-thirds reduction! This can significantly bring down inflation immediately.”
Dangote expressed confidence that the upcoming inflation figures will reflect this positive trend. “We’re moving in the right direction, step by step,” he declared. “I’m sure the government is working tirelessly to improve things further. After all, a better economy benefits everyone.”
Dangote’s comments come amidst ongoing concerns about inflation in Nigeria. The reduced diesel price, if sustained, could offer some much-needed relief for Nigerians grappling with rising costs of goods and services. While it’s important to acknowledge external factors that could influence fuel prices, Dangote’s optimism and the efforts of his refinery offer a spark of hope for a more stable economic future.
