Lifting Petrol from Dangote Refinery to Ease FX Pressure – CBN Governor, Yemi Cardoso
The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has announced that the lifting of petroleum products from the Dangote Refinery will help ease the demand for foreign exchange (FX) and reduce pressures on the economy.
Speaking during the 297th Monetary Policy Committee (MPC) meeting in Abuja, Cardoso explained that sourcing refined petroleum products locally from the refinery would lower transportation costs, which in turn, is expected to bring down food prices in the short to medium term.
“The committee is optimistic that lifting refined petroleum products from the Dangote Refinery will help to reduce transportation costs and significantly ease food price pressures,” Cardoso said. He also added that this initiative would reduce the need for FX to import refined petroleum products, which could have a positive impact on the country’s external reserves and overall balance of payments.
On the banking sector, the CBN governor reassured Nigerians that the country’s financial institutions are stable. Despite some challenges, Cardoso said that key financial indicators show the banking industry remains safe and sound. However, he emphasized the need for continued regulatory oversight to ensure the sector’s ongoing support for the economy.
Addressing the issue of food inflation, Cardoso highlighted several risks including flooding, energy price hikes, petrol scarcity, and insecurity in farming communities. He acknowledged the Federal Government’s efforts to tackle insecurity in farming areas and bridge the food supply gap through duty-free importation of food commodities.
The CBN governor urged stakeholders to stay committed to improving food security and stabilizing the economy.
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