Muda Yusuf Says: Drama Between Dangote Refinery, NNPCL Is Bad For The Economy

According to economist Muda Yusuf, there is cause for concern regarding the dramatic increase in fuel prices between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL). Yusuf contended that the progress would deter potential investors.

During an interview on The Morning Brief on Channels Television, he disclosed his reservation.

“The dramatization of the price that the NNPCL is paying Dangote worries me. arriving in the open area to discuss what we’ve heard. I don’t think it’s healthy for the economy, our perception, or the confidence of investors,” Yusuf remarked.

The economist went on to say that because Nigeria has a weak social safety net for its most vulnerable citizens, the country cannot ignore the issue of the removal of gasoline subsidies.

He pointed out that the NNPCL acknowledged bearing cost differences with imported petroleum products even after the president declared on May 29, 2023, that the subsidy was eliminated.

“We cannot ignore this subsidy issue so fast or else it will make life very difficult,” he stated. Things are really challenging already.

“While the NNPCL has been providing subsidies up to this point, and while this is fine, talking about a total deregulation of the system in an economy without a social safety net will not be appropriate at all,” the statement reads.

He said that people are overstretched financially and that the situation has gotten worse due to the increase in gas prices at the pump.

The economist went on, “We need to recognize that the economy is about people because we are pushing the citizens almost to their breaking point.”

He claims that complete deregulation is unfeasible in a nation like Nigeria because there is no safety net for the populace to fall back on.

The economist suggested that import substitution be implemented in all economic areas to lower the demand for imported goods.

The exchange rate will be significantly impacted if we can relieve that pressure. We’ll be making progress if we can gradually turn inward and lessen import, he continued.