Cardoso Exposes How Dangote Refinery Will Reduce Food Prices In Nigeria

 

 

Dangote Refinery Food CBN

The Central Bank of Nigeria (CBN) has projected that lifting petroleum from the newly launched Dangote Refinery will help reduce food prices in Nigeria in the short to medium term. CBN Governor Olayemi Cardoso shared this outlook during a press conference following the 297th meeting of the Monetary Policy Committee (MPC) in Abuja.

 Cardoso explained that the refinery’s operations would lower transportation costs, which would have a positive impact on food prices. He also noted that the refinery is expected to reduce the country’s foreign exchange demands, improving Nigeria’s external reserves.

“The committee is optimistic that the lifting of refined petroleum products from Dangote Refinery will moderate transportation costs and help ease food price pressures in the short to medium term,” Cardoso said.

He further added that this development could decrease the need for foreign exchange for fuel imports, improving the country’s external reserves and balance of payments.

Addressing food inflation, Cardoso highlighted risks including flooding, rising energy costs, fuel scarcity, and insecurity in farming areas. He emphasized the government’s ongoing efforts to improve security in agricultural communities, which remains crucial in managing food inflation.

The MPC also commended the government’s efforts to address supply shortages by allowing duty-free imports of essential food commodities.