The National Institute for Policy and Strategic Studies (NIPSS) has assured Nigerians that the price of petrol will decline as Dangote Refinery and other local refineries begin full operations.
Before the removal of fuel subsidies, petrol sold for less than ₦200 per litre. Now, prices have surged to about ₦930 per litre, depending on location.
Despite the increase, NIPSS Director-General Ayo Omotayo expressed optimism about future relief while speaking on The Morning Brief on Channels Television on Tuesday, April 1.
“With the removal of the first 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,” he said.
He predicted that petrol prices could drop to around ₦750 per litre before the end of the year and that the exchange rate would stabilise.
“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.
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“We will become a net exporter in the long run,” he added.
While acknowledging the current hardships, Omotayo maintained that the policy would yield benefits over time.
“The gains at this time are very little, but then in the long run, we will make up for whatever sacrifices we have made today as Nigerians,” he stated.
Defending the subsidy removal, he argued that though the effects are tough now, the long-term benefits outweigh the immediate difficulties.
“Most of the benefits will come in the medium and long term. For now, the government has introduced palliatives to help ease the burden on the poor. We all need to adjust our spending,” he said.
Omotayo insisted that the nation would eventually reap the benefits, saying, “In the long run, we will recover whatever sacrifices we have made today as Nigerians.”