By Miftaudeeen Raji
Higher landing costs as currently being witnessed has been linked to the global energy crisis as a result of the ongoing Russia-Ukraine war.
A trade and finance expert, and lecturer in the Department of Economics, University of Lagos (UNILAG), Dr Adebayo Adedokun, made the assertion in an interview with Vanguard.
Adedokun stated that the only way to reduce the effect is when Nigeria doesn’t have to import refined products, at least, the cost of shipping, insurance, legal fees and others will be cut if we refine our products locally.
He said: “That of course will give us a rough idea of what is to be subsidized, the landing costs are higher now because of the global energy crisis as a result of the Russia-Ukraine war ongoing.
“I’m afraid, we still have to live with the consequences of our inefficiency and lack of capacity to solve energy problems that we are smarting with.
“The solution lies in asking relevant questions and finding optimal decisions that will reduce government deficits and at the same time, it must not jeopardize social welfare contact of the government with the people,” the don said.
Adedokun also noted that the Russia-Ukraine war was also responsible for the mounting fiscal deficit of the Federal Government.
“Though due to fuel subsidy costs aggravated by the outcome of inefficiency in the nation’s energy sector and lack of capacity to solve energy problems,” he said.
He stressed that the solution lies in asking relevant questions and finding optimal decisions that will reduce govt deficits without jeopardizing social welfare contact of the government with the people.