Nigerians are expressing frustration over the recent fuel price hike by the Nigerian National Petroleum Company (NNPC) Limited, with updates on petrol scarcity and government and citizen reactions provided by Gistreel. Economist and CEO of Financial Derivatives Company Limited, Mr. Bismarck Rewane, has projected that petrol prices in Nigeria could soon reach ₦1,200 per litre.
- In his November 2024 economic outlook, Rewane anticipates that Brent crude oil could drop to $70 per barrel by December, with inflation potentially rising to 34%. He also forecasts that the Naira could appreciate to ₦1,550/$ by January 2025.
- According to ThisDay, Rewane shared these insights during the November session of the Lagos Business School’s Breakfast Session titled ‘Democracy on Trial! Trump – Going Back to the Future.’
- He emphasized that there is no economic rationale for the Naira to trade at less than 30% of its fair value within the next 12 months.
- “According to the Economist Intelligence Unit, crude oil prices next year will average $74 per barrel, which could push petrol prices to ₦1,200 per litre,” he stated.
- The Dangote Refinery and Petrochemical is set to commence fuel exports to South Africa, Angola, and Namibia.
- A source informed that the management of the 650,000-barrel-per-day capacity refinery is in advanced discussions with these nations regarding fuel supply agreements.
- Reports indicate that four additional African countries – Niger Republic, Chad, Burkina Faso, and the Central African Republic – have also begun negotiations with the refinery.
- More countries are expected to express interest in securing fuel supplies from the $20 billion Lekki-based refinery in the coming months.- Ghana has already shown interest in purchasing petrol, with Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, stating that the deal with Dangote would eliminate the country’s monthly $400 million fuel imports from Europe.
- Lawmaker Sani Musa, representing Niger East Senatorial District in the National Assembly, has praised President Bola Tinubu for his decision to implement the fuel subsidy removal policy.
- Musa, in an interview with Channels TV on Friday, stated that the fuel subsidy removal by President Tinubu is the best thing that has happened to Nigeria.
- According to a previous report by Gistreel, the President announced the total removal of fuel subsidy on May 29, 2023, which resulted in a sharp increase in petrol prices, inflation, and a rise in the prices of other commodities.
- However, Senator Musa mentioned during his interview that President Tinubu made the decision in the best interest of the country.
- “We want to be sure that what we are doing is not going to reflect negatively on Nigerians,” he said.
