Central Bank of Nigeria (CBN) Governor Yemi Cardoso announced that the Dangote Refinery’s petroleum products will alleviate foreign exchange demand pressures. Speaking at the 297th Monetary Policy Committee meeting in Abuja, Cardoso noted that this development will also reduce transportation costs, easing food price pressures.
“The lifting of refined petroleum products from Dangote refinery will moderate transportation costs and support the easing of food price pressures,” Cardoso said. This move is expected to reduce foreign exchange demand for importing refined petroleum products, positively impacting Nigeria’s external reserves and balance of payment position.
Regarding the banking industry, Cardoso assured that financial institutions remain stable despite challenges. However, he emphasized the need for continued supervisory oversight.
On food inflation, Cardoso identified upside risks, including flooding, energy price hikes, petrol scarcity, and insecurity in farming communities. He praised the government’s efforts to address insecurity and bridge food supply deficits through duty-free import windows for food commodities.
Key takeaways:
- Dangote Refinery’s petroleum products to reduce foreign exchange demand pressures
- Expected reduction in transportation costs and food price pressures
- Banking industry remains stable
- Upside risks to food inflation include flooding, energy price hikes, and insecurity
- Government efforts address insecurity and food supply deficits
