Nigerians may suffer recurring fuel shortages

Significance

These supply disruptions were largely caused by a lack of sufficient foreign exchange at the state-owned Nigerian National Petroleum Corporation Limited (NNPCL), which has hindered its ability to import refined petrol. Private importers suffered from similar constraints as well as unfavourable market conditions.

Impacts

• The government will struggle to restrict cryptocurrency trading.
• The Central Bank of Nigeria may seek further interest rate increases this year.
• Obstacles to increased investment may limit oil output growth in the coming years.
• When the Dangote refinery begins to refine petrol at scale, Nigeria’s fuel import requirements will ease.