African Billionaire, Dangote Holds Conviction On Nigeria’s Economic Outlook

There are many roads to Paul, one is Barnabas.

Africa’s wealthiest individual, Aliko Dangote, is confident that a decrease in the retail price of automotive gas oil, commonly known as diesel, could play a pivotal role in curbing inflation rates. At a recent meeting with President Bola Tinubu in Lagos, Dangote observed that the recent economic advancements, signals positive strides for the country.

According to the business magnate, reducing the cost of diesel from N1,650 to N1,200 would yield significant benefits, potentially leading to an immediate reduction in inflation.

He also pointed out that the recent fluctuation in the exchange rate, with the naira stabilizing around N1,250 to N1,300, offers a promising reprieve from previous challenges.

He says:

“In our refinery, we started selling diesel at about ₦1,200 for ₦1,650 and I’m sure as we go along…this can help to bring inflation down immediately,”

Dangote noted that the high prices of diesel have contributed to inflationary pressures, affecting locally produced commodities like flour. However, with the refinery now selling diesel at a reduced price of N1,200, he expressed optimism for further improvements in economic conditions.

Dangote explained further:

“If you look at it now, when you are buying ₦1,650 or ₦1,700 for a litre of diesel, and that one has been cut off by almost two-thirds, you are now paying ₦1,200 for diesel.

“Maybe, going forward, even though the crude prices are going up, I believe people will not get it much higher than what it is today, ₦1,200. It might be even a little bit lower, but that can help quite a lot because if you are transporting locally-produced goods and you were paying ₦1,650, now you are paying two-thirds of that amount, ₦1,200. It’s a lot of difference. People don’t know.

Moreover, Dangote suggested the possibility of diesel prices declining even further in the future, despite the upward trend in crude oil prices.

In urging entrepreneurs to collaborate with the government to enhance citizens’ welfare, Dangote acknowledged the government’s efforts in addressing economic challenges.

Phew!