The Managing Director of Financial Derivatives Company Limited, Bismark Rewane, says with the commencement of diesel production at the Dangote Refinery, the price of diesel per litre will fall below N1,000 from the current price of N1,500. Rewane was a guest on Channels Television’s News At 10 during the week where he reviewed the recent hike in interest rates by the Central Bank of Nigeria .
I heard the central bank governor saying that inflation is gonna come down in May. God bless Nigeria. But the truth is that with the minimum wage, you are bound to have another spike in inflation but it’s not gonna break the bank. It’s just gonna mean that we are going to have to deal with inflation over a longer period.Well, on the retail side, it’s N1,500. Dangote refinery has already started putting diesel in the market and people are buying that in anticipation and bringing it down.
Now, let’s go down. In February, a bag of rice was N80,000. It went up to N95,000 and now it’s down to N88,000 a bag. We expect by June, it will come down to N85,000 because Ramadan and fasting are over. Now, the price of a loaf of bread is 1,300 in February, it is now at 1,600. We expect it to drop to 1400.This is where it gets interesting, very interesting, international school fees. Even though the naira has appreciated by 45%, your international school fees will not go down by more than 15%.