Aliko Dangote, the richest man in Africa, says the drop in the retail price of automotive gas oil, also known as diesel, can help bring inflation down.
Dangote spoke to journalists on Wednesday during his visit to President Bola Tinubu in Lagos.
He said there has been considerable economic progress recently, indicating the country is on the right path.
The businessman said reducing the cost of diesel from N1,650 to N1,200 would make a lot of difference, potentially helping to immediately lower inflation rates.
“There’s quite a lot of improvement because if you look at it, one of the major issues that we have had was the naira devaluation that has gone very aggressively up to about N1,900,” Dangote said.
“But right now, we are back to almost N1,250, N1,300, which is a good reprieve. Quite a lot of commodities went up. When you go to the market, for example, something that we produce locally like flour, people will charge you more. Why? Because they are paying very high diesel prices.
“Now, in our refinery, we started selling diesel at about N1,200 instead of N1,650 and I’m sure as we go along, things will continue to improve quite a lot.
“If you look at it now when you are buying N1,650, N1,700 for a litre of diesel and that one has been caught up by almost one-third to now be paying diesel at N1,200.”
Dangote also said there is a possibility of diesel prices dropping.
“Maybe eventually going forward, even though the crude prices are going up, I believe, people will not get it much higher than what it is today, N1,200, it might be even a little bit lower but that can help quite a lot,” the businessman said.
“Because if you are transporting locally produced goods, rice and other stuff, you are paying N1,650. Now you are paying two-thirds of that amount to N1,200, it is a lot of difference. You know, people don’t know that can actually help to bring inflation down immediately.
“And I’m sure when the inflation figures are out for the next months, you will see that there is quite a lot of improvement in the inflation rate.”
Dangote said the government is tirelessly striving to improve the situation, urging entrepreneurs to collaborate with the government to enhance the welfare of the citizens.
