The National Institute for Policy and Strategic Studies (NIPSS) has predicted a significant reduction in petrol prices as new refineries, including the Dangote Refinery, begin operations.
Fuel prices, which were below ₦200 per litre before President Bola Tinubu’s removal of fuel subsidies, have surged to around ₦930 per litre in some areas. However, NIPSS Director-General Ayo Omotayo remains optimistic about relief for Nigerians.
“With the removal of the fuel subsidy, we have Dangote Refinery coming on. We have the other refineries. The refinery in Port Harcourt has worked continuously for 110 days if I’ve counted right! These are the short-term gains,” Omotayo said on Tuesday during an interview on Channels Television’s The Morning Brief.
“We are buying fuel a little bit more expensive, but as we predict at the National Institute that if we continue with what we are currently doing, fuel by itself will come down. We’re looking at it coming down as low as ₦750 before the end of the year. And of course, foreign exchange, we believe, will still drop to about 1.3 before the end of the year, and it is going to continue like that as more of our refineries come into place. We will become a net exporter in the long run.”
Omotayo acknowledged that the immediate benefits may be small, but assured Nigerians that “in the long run, we will make up for whatever sacrifices we have made today.”
President Tinubu’s decision to eliminate the fuel subsidy marked the end of a long-standing policy where the government swapped crude oil for subsidized petrol, a system that drained public funds and contributed to mounting national debt.
The abrupt removal triggered panic and a sharp rise in fuel costs, but according to Omotayo, the action was necessary to prevent economic collapse.
“So for us at the National Institute, it was a very timely step that Mr. President took, and it has come a long way in saving Nigeria,” he stated.
He added, “We were on the verge of collapse with subsidies. The subsidies we were paying were just totally unimaginable, and of course, we were subsidizing fuel as far as Burkina Faso, as far as Sierra Leone in some instances. So a government that wants to succeed must take very tough decisions. For us at the National Institute, we commend the President for the removal of fuel subsidy, even though the Nigerian politic may feel it is harsh, that we needed some more time.”
The National Institute for Policy and Strategic Studies (NIPSS) has predicted a significant reduction in petrol prices as new refineries, including the Dangote Refinery, begin operations.
Fuel prices, which were below ₦200 per litre before President Bola Tinubu’s removal of fuel subsidies, have surged to around ₦930 per litre in some areas. However, NIPSS Director-General Ayo Omotayo remains optimistic about relief for Nigerians.
“With the removal of the fuel subsidy, we have Dangote Refinery coming on. We have the other refineries. The refinery in Port Harcourt has worked continuously for 110 days if I’ve counted right! These are the short-term gains,” Omotayo said on Tuesday during an interview on Channels Television’s The Morning Brief.
“We are buying fuel a little bit more expensive, but as we predict at the National Institute that if we continue with what we are currently doing, fuel by itself will come down. We’re looking at it coming down as low as ₦750 before the end of the year. And of course, foreign exchange, we believe, will still drop to about 1.3 before the end of the year, and it is going to continue like that as more of our refineries come into place. We will become a net exporter in the long run.”
Omotayo acknowledged that the immediate benefits may be small, but assured Nigerians that “in the long run, we will make up for whatever sacrifices we have made today.”
President Tinubu’s decision to eliminate the fuel subsidy marked the end of a long-standing policy where the government swapped crude oil for subsidized petrol, a system that drained public funds and contributed to mounting national debt.
The abrupt removal triggered panic and a sharp rise in fuel costs, but according to Omotayo, the action was necessary to prevent economic collapse.
“So for us at the National Institute, it was a very timely step that Mr. President took, and it has come a long way in saving Nigeria,” he stated.
He added, “We were on the verge of collapse with subsidies. The subsidies we were paying were just totally unimaginable, and of course, we were subsidizing fuel as far as Burkina Faso, as far as Sierra Leone in some instances. So a government that wants to succeed must take very tough decisions. For us at the National Institute, we commend the President for the removal of fuel subsidy, even though the Nigerian politic may feel it is harsh, that we needed some more time.”
