A financial expert, Prof. Uche Uwaleke, on Wednesday, said that the federal government’s reduction in the price of fuel would complement the stimulus package announced by the Central Bank of Nigeria (CBN) to reduce the effect of COVID-19.
Uwaleke, of Nasarawa State University, Keffi, told the News Agency of Nigeria (NAN) in Lagos that the reduction in the pump price of Premium Motor Spirit (PMS) from N145 to N125 per litre would reactivate economic activities.
“It complements the stimulus packages just announced by the CBN.
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“The immediate impact is a reduction in transport costs and possibly food inflation,” Uwaleke said.
The professor, who commended government for the reduction, said that if properly implemented, it would lower the inflation rate, which stood at 12.20 per cent in February.
He said that a lower inflation rate would translate to improved purchasing power and lower cost of living.
According to him, the movement of goods and people will lead to increased economic activities, thereby translating to higher Gross Domestic Product.
NAN reports that President Muhammadu Buhari has approved the reduction in the pump price of PMS from N145 to N125 per litre following the crash of crude oil price in the international market.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, confirmed this after the meeting of the Federal Executive Council (FEC) presided over by President Buhari on Wednesday at the presidential villa, Abuja.
Sylva had last week said the government was in consultation with relevant stakeholders on the possibility of reducing the price following the crash in crude oil prices in the international market.