Economist Muda Yusuf has expressed concern over the publicized conflict between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery regarding petrol prices, warning that it could negatively impact the economy and deter investors.
Yusuf voiced his apprehensions during an appearance on Channels Television’s The Morning Brief. He criticized the public debate over pricing issues, suggesting that it undermines investor confidence and tarnishes the country’s economic image.
He emphasized that Nigeria cannot rapidly transition away from petrol subsidy removal, given the country’s inadequate social safety net for the poor and vulnerable. Despite the presidential declaration on May 29, 2023, indicating the end of subsidies, NNPCL has continued to absorb cost differentials with imported petroleum products.
Yusuf argued that a complete deregulation of the petroleum sector in the absence of a robust social safety net is impractical and would exacerbate the economic hardships faced by citizens. He pointed out that the recent hike in petrol prices has further strained the already overstretched population.
He also suggested that the government should focus on reducing dependency on imported products through import substitution strategies, which could positively influence the exchange rate and contribute to economic stability.
News Editor