Economists warn on spiralling inflation, hike in prices of petroleum products

Urge govt to ensure refineries works before December
Economic experts have warned the Federal Government against continued increase in prices of petroleum products, saying runaway inflation could hit the country, unless policies are well managed.

They spoke against the backdrop of near-daily increase in prices of diesel and related products, which has resulted in corresponding hike in costs of goods and services, with attendant pain to households across the country.

In a telephone interview with The Guardian, yesterday, Prof. Akpan Ekpo of the University of Uyo, Akwa Ibom State, said, if left unchecked, the trend could accelerate rate of inflation and increase cost of doing business. According to him, this could reduce the interest of foreign investors in Nigeria’s business environment.

The professor of economics said: “It is for us to make sure the refineries work. If the refineries work, the country will have enough domestic supply of products. Recall that the prices of diesel and Liquefied Petroleum Gas are going up because we are importing them in dollars. You’ll agree with me that the dollar is hovering around N950 or almost N1,000 to $1 in Nigeria currently, So, if we don’t tame that, it will have unhealthy effects on the economy.”

He called on the government to ensure that by December 2023, the refineries work; otherwise the nation could experience grave economic challenges.

“Government needs urgent solutions to bring up our refineries because the economy is based on petroleum and related products. Of course, once prices go up, it affects every aspect of human life,” he said.

On his part, Prof Omo-Ogun Ajayi of the University of Calabar warned against any policy of the government that could further worsen living standards of the poor.

He said: “The poor are already witnessing severe hardship in various households, such as inability to pay children’s school fees and provide daily needs.”

He also appealed to the government to reinstate fuel subsidy to ameliorate sufferings of the masses.