Nigeria faces tough time ahead as cost of energy continues to impact on the country economic activities.
The World Bank has listed Nigeria among countries to be negatively impacted by soaring global energy prices due to the ongoing Russia-Ukraine war.
According to National Bureau of Statistics average retail price of Automotive Gas Oil otherwise known as diesel increased by 181 per cent from N238.82 in May 2021 to N671.08 in May 2022. Also, the prices of gas and kerosene have gone up by 88% in 12 months.
Recall, Energy prices soared in the third quarter of 2021 and are expected to remain elevated in 2022, adding to global inflationary pressures and potentially curbing growth in energy-importing countries including Nigeria, according to the World Bank.
Nigeria, although being a global oil producer, is still heavily reliant on imported oil. Nigeria’s fuel imports in 2021 were 128% greater than they were in 2020. Experts have advocated a drastic reduction in importation by revamping our refineries or building new ones so that local production can be boosted; some have called for the sale of the moribund refineries.