The Financial Derivatives Company (FDC) Limited has identified the Dangote Petroleum Refinery as pivotal to reducing Nigeria’s inflation rate, particularly through its impact on fuel pricing and transportation costs.
This was revealed in FDC’s July edition of the Lagos Business School (LBS) Executive Breakfast Presentation, delivered by the company’s Managing Director and Chief Executive Officer, Mr Bismarck Rewane.
According to the report, the refinery’s uniform pricing strategy and the extension of credit to fuel marketers represent a transformational shift in Nigeria’s downstream petroleum sector.
The think tank emphasised that the initiative could cut logistics costs significantly, with an estimated impact of over N1.7 trillion annually.
“Dangote’s uniform pricing and credit to marketers is a game changer and a catalyst for more private sector investment,” the report stated.
It further highlighted that Dangote’s deployment of 4,000 Compressed Natural Gas (CNG) trucks nationwide to distribute refined products will drive down pump prices, ease inflationary pressures, and support more than 42 million micro, small, and medium-sized enterprises (MSMEs) across the country.
The report also pointed out a paradox in Nigeria’s oil economy: when global oil prices rise, the government earns more and the naira strengthens, but the average citizen sees little benefit. Conversely, falling oil prices offer relief to consumers but reduce government revenue.
Globally, the report noted a shift from market fear to speculative exuberance, as traders exploit investor anxiety to profit from economic instability.
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