Rising petrol prices: Can Dangote’s refinery help?
Dangote refinery vs fuel price crisis. Source: Stears Business

Nigeria's petrol crisis comes in two forms. 

One, we import petrol instead of producing it. Secondly, many Nigerians are unwilling or unable to pay the market price for fuel. 

Let's start with the petrol importation crisis.

 

Petrol Crisis A - Importation 

A few years ago, I was a staunch advocate for the Federal Government's "Buy Naija to grow the naira" initiative. 

I remember being intrigued by a decision my friend, Frederick, made. He wanted to buy a Lexus SUV. But he didn't even look at Nigerian dealerships. He went straight to US dealer websites to search for a car. He preferred to import. He explained that it was cheaper to import the vehicle than to buy it locally. Buy Naija to grow the naira 0 - 1 importation. 

Importing a Lexus is understandable. Nigeria does not produce them here. So, we have to import. Either through the dealer or the ultimate user, the vehicle still

Don’t limit your understanding. Join the Premium community to continue reading.

Osato Guobadia

Osato Guobadia

Read Latest

How Nigeria can unbundle its rail lines efficiently

PREMIUM - 27 SEP 2021

Economies are gaining from carbon taxes, but not Nigeria

PREMIUM - 24 SEP 2021

Nigeria is experiencing a housing bubble and it's absurd

PREMIUM - 23 SEP 2021

Nigeria’s health infrastructure and its funding problem

PREMIUM - 22 SEP 2021