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Nigeria to phase out kerosene usage by 2030 – Buhari

September 14, 2022 No Comments

President Muhammadu Buhari has announced the federal government’s plan to jettison kerosene consumption by 2030 when gas supply would have been total.

Buhari made the pronouncement in Abuja at the opening ceremony of the 15th Annual Banking and Finance Conference organised by the Chartered Institute of Bankers of Nigeria (CIBN).

Represented by the Minister of Finance, Budget and National Planning Mrs Zainab Ahmed, President Buhari emphasised that long-term greenhouse emissions have resulted in hotter temperatures, more severe rainstorms, increased drought and food security issues.

“To tackle this issue, the government has set plans in motion to significantly reduce greenhouse emissions from Nigeria. More specifically, by 2030, we aim to eliminate kerosene lighting as well as short-lived pollutants in the oil and gas sector,” he said.

On the raging inflation across the globe, he attributed the scary inflation figures across the world to fast-rising consumer demand in a world that was yet to fully recover from the COVID-19 pandemic, and is now facing the Russia-Ukraine war.

Nigerian inflation quickened for a 14th straight month in October on rising food prices caused by border closures, dollar restrictions and banditry attacks that are preventing farmers from producing food.

Consumer prices rose 14.2% from a year earlier, compared with 13.7% in September, Abuja-based National Bureau of Statistics said Tuesday in a report published on its website. The median estimate of five economists surveyed by Bloomberg was 14.1%. Costs rose 1.54% in the month.

Key Insights

This is the fifth year inflation has exceeded the central bank’s target range of 6% to 9% and will probably continue accelerating due to an end of fuel subsidies, currency weakness, typical price hikes related to the festive season and a recent order by President Muhammadu Buhari that restricts dollar access for food and fertilizer imports. That will drive traders to the parallel market for foreign exchange, where they will pay a lot more.
Food prices have been a key driver of inflation in Africa’s largest economy. The food index, which accounts for more than half the inflation basket, rose 17.4%, compared with 16.66% in September. Floods, violent farm attacks, and clashes between herders and farmers weigh on supply, though the government’s softening stance on border closures in place since August 2019 may reduce pressures.
An unexpected cut in the key interest rate by 100 basis points in September will probably mean the central bank will hold the rate at 11.5% next week as it seeks to support a recovery in Africa’s largest economy, even as inflation remains sticky.