Muda Yusuf: Ongoing NNPCL And Dangote Refinery Feud Bad For The Economy

Muda Yusuf: Ongoing NNPCL And Dangote Refinery Feud Bad For The Economy

Economist Muda Yusuf has expressed concern over the ongoing tension between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) regarding petrol prices. Yusuf warned that the public dramatization of the issue could deter investors…….CONTINUE READING

During an appearance on *Channels Television’s The Morning Brief*, Yusuf stated, “I’m worried about the dramatization of the cost at which NNPCL is buying from Dangote. Bringing these exchanges into the public space isn’t good for the economy, public perception, or investor confidence.”

He further explained that Nigeria cannot completely move away from the issue of petrol subsidies, given the lack of a robust social safety net for the poor and vulnerable. Despite the government’s declaration on May 29, 2023, that subsidies were removed, NNPCL continued to absorb cost differences related to imported petroleum products.

“We can’t walk away from the subsidy problem quickly, as it would make life extremely difficult. Things are already tough. The NNPCL has been gradually reducing subsidies, which is positive, but full deregulation in a country without a safety net isn’t feasible,” Yusuf said.

He emphasized that citizens are already economically strained, and the increase in petrol prices has exacerbated their situation. “The economy is about people, and we must acknowledge that we are pushing citizens to their limits,” he added.

Yusuf suggested that total deregulation is not realistic for Nigeria in its current state and urged the government to promote import substitution across various sectors to reduce dependence on imported products. He noted that this shift would ease pressure on the exchange rate and strengthen the local economy.