Nigeria's Dangote Refinery Raises Prices Amid Global Oil Shocks
Nigeria's oil producer and top economy is facing renewed concerns about inflation and exposure to global shocks despite its growing domestic refining capacity. The country's largest initial public offering (IPO) began on Monday, with shares of Dangote Refinery selling out. However, the company raised wholesale petrol prices by 7% last week, prompting a 5% increase at pump stations in Lagos and Abuja.
The move is sparking worries about inflation, which slowed marginally to 15.39% in August due to improved food supply and exchange rate stability. The Nigerian Labour Congress (NLC) warned that rising fuel prices could cause 'incalculable damage' on wages and household expenses.
Nigeria's President Bola Tinubu ended the country's decades-old fuel subsidy scheme in 2023, leading to a five-fold increase in fuel prices since then. The cost-of-living crisis has become a key campaign issue ahead of an election in January where Tinubu will seek re-election.