The issue of fuel subsidy has been a burden for Nigerians and Nigerian Government a lot. This is due to the constant argument for its removal, the hardship, and the increase in fuel price. In this post, we’ll be examining fuel price and subsidy in Nigeria: will Nigerian refineries work and get fuel Prices down?
Now, let’s take a look at the contents of the article–to see whether Nigerian refineries will work in 2024 as promised by the Nigerian Government, and if fuel prices will go down?
Fuel Price and Subsidy in Nigeria: Will Nigerian Refineries work and get Fuel Prices down?
The Nigerian Government in 2023 had promised Nigerians that petrol and crude oil refineries in Nigeria will work in 2024. These refineries range from the Government-owned refineries in Port Harcourt, Warri, Kaduna, Owerri, and so on, to private refineries such as Dangote and BUA refineries, and to several modular refineries, mostly in the Niger Delta region. Most of these refineries (if not all) would work optimally in 2024.
The release of this piece of information is coming on the heels of fuel subsidy removal in 2023. Thus, the prices of petrol, diesel and other crude oil products rose astronomically by over 60%. Petrol rose from 180 naira to around 600 naira across the country. This caused unimaginable hardship on Nigeria.
The Nigerian Government trying to soothe the suffering of Nigerians promised to deliver its refineries to work in 2024, and to ensure that other private and modular refineries work as well. Will this improve the economy and make the sufferings of Nigerians reduce? A big YES. Will this promise be kept, or will the wish he fulfilled? The answer is not definite.
Now, let’s take a look at the possible effects of working optimal and working refineries in Nigeria.
The Economic Effects of Functioning Refineries in Nigeria
If the promise and plan of refineries to work in 2024 in Nigeria can be fulfilled. It will be of great immense value to Nigeria. It will, of course, improve the Nigerian economy. Now, what are the effects of functioning refineries in Nigeria?
1. The Nigerian Government and economy can make over $20 billion in sales of refined crude oil of different kinds ranging from petrol to diesel to gas to so many more.
2. More than 30,000 jobs will be created in this sector when the refineries are up and running. In addition, over 100,000 people will benefit economically, directly or indirectly, from these functioning refineries.
3. Nigeria can save more than $10 billion the country deploys yearly in the importation of crude oil products.
4. Due to no importation and cheaper logistics, the prices of crude oil products will go down a bit, perhaps by as low as a cut of 10% of the original price. Thus, fuel selling for 600 naira now may sell for 550 to 560 naira.
5. The stability of the naira will be improved as the pressure on the naira coming from the angle of crude oil importation will be reduced. In addition, Nigeria will be making extra over $10 billion to the export value of Nigeria, improving the country’s currency.
These are the economic effects and impact of functioning refineries in Nigeria (if, indeed, they’ll work).
The removal of fuel subsidy also has positive economic effect in terms of Nigeria saving a lot of money, and reducing the financial pressure on the country. However, it is causing serious economic hardship on Nigerians.
This post has done justice to its topic of fuel price and subsidy in Nigeria: will Nigerian refineries work and get fuel Prices down? You just have to read to know the enormous benefits of functioning refineries to Nigeria. These working refineries would improve the economic conditions and realities of Nigeria.