In Nigeria, manufacturers attribute the increasing prices of goods to the high cost of diesel.
When discussing the surge in prices, the Director General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, highlighted the significant impact of diesel expenses on manufacturers’ profits.
He pointed out that diesel consumption accounts for a large portion of manufacturers’ earnings, affecting the overall cost of production and subsequently causing a rise in prices across the country.
Ajayi-Kadir emphasized that the challenging operating environment faced by local manufacturers, including issues such as high diesel costs, customs exchange rates, interest rates, foreign exchange scarcity, and NAFDAC regulations, necessitates price adjustments for goods.
He stated, “Surviving manufacturing firms in Nigeria are grappling with exorbitant diesel prices, significantly impacting their ability to remain profitable. Factors like these contribute to the unavoidable price increments consumers witness.”
Despite these challenges, Ajayi-Kadir acknowledged the positive development resulting from the Dangote refinery’s introduction of diesel sales, leading to a reduction in diesel prices from N1,700 per litre to N1,200.
Recent data indicates a continual rise in inflation, with the March figure climbing to 33.20% from 31.70% in February.