Prominent economist Bismarck Rewane has cautioned that the recent surge in petrol prices across Nigeria has the potential to drive the nation’s inflation rate, which currently stands at a significant 23.18%, even higher.
While the full impact of the petrol price increase is yet to be felt, Rewane expressed his concerns about the potential adverse economic consequences in the near future during an appearance on Channels Television’s Business Morning show on Tuesday.
Rewane noted, “There might be an increase in the rate of inflation because of the increase in the price of petrol, but we haven’t seen the corresponding increase in the prices of transport fares so far.” However, he pointed out that the prices of food commodities have already begun to climb, exacerbating the situation, especially with the onset of the planting season. According to Rewane, this upward trend in food prices is likely to exert further pressure on Nigerian consumers.
The Managing Director of Financial Derivatives Company Limited also highlighted broader global economic uncertainties, particularly focusing on the ongoing trade tensions between the United States and other nations. He specifically referenced the tariffs imposed on imported goods such as sugar, steel, and aluminum, warning that these protectionist measures could lead to increased costs for consumers. Rewane emphasized that these global developments add another layer of complexity to Nigeria’s economic challenges.
Rewane’s analysis underscores the delicate balance Nigeria faces in managing inflation amid rising fuel costs and global economic headwinds. His insights will be closely watched by policymakers and the public alike as the nation navigates these complex economic waters.
