An economic expert has expressed the need for the federal government to make strategic plans to resuscitate the nation’s domestic refineries.
A Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Sheriffdeen Tella, stated this while commenting on the impact of Russian and Ukrainian crisis on Nigeria.
He said there was no doubt that tougher times were ahead for Nigeria, given that the country had to pay more for importation of refined oil products and others in spite of the higher income and revenue from oil exports.
He said categorically that the time was ripe for the federal government to make strategic plans and give particular attention to the domestic refining.
According to him, the ongoing Russia- Ukraine conflict had escalated the prices of petroleum products at the international market, which is currently having a multiplier effect in Nigeria.
He insisted that the only way out of the situation is for the government to resuscitate the nation’s comatose refineries and embark on building new ones to boost production capacity.
Tella suggested that the government should hand over the moribund companies to the private sector, noting that active private sector involvement is needed to resuscitate the ailing sector.
He also said there is need to support local businesses that are using domestic raw materials to produce goods instead of imposing tax on them to compound the high cost of domestic production.
Vice President, Highcap Securities, Imafidon Adonri said the remote cause of the inflation is traceable to the age long import dependence of the economy.
He said: “Any external shock that depresses value of the Naira is reflected immediately in rise of domestic inflation. Already existing external shocks connected to rising inflation in industrialized economies and the rise in their interest rate is capable of battering the Nigerian economy in two ways.
“Now compounding these external shocks is the global disruption to trade and finance caused by the reign of terror unleashed on Ukraine by devilish Russia recently. The impact will certainly exacerbate inflation in Nigeria despite the windfall from crude oil sales because of imported inflation.
He said unless Nigeria boosts its manufacturing base to aid industrialization and reduce over dependence on importation, the nation would not witness any meaningful growth.
