19bn last month as spending in transportation declined considerably over coronavirus pandemic.
A recent survey conducted by REACH Technologies, a Nigeria-based fintech, on behalf of FBNQuest, indicated a substantial decline in household spending on transportation. Given relatively softer petroleum products demand in the first half of 2020, the near-term outlook for the sector is certainly subdued.
“We believe the re-introduction of a market-friendly pricing template for petrol in March and the central bank’s current attempt at unifying foreign exchange rates increase the prospects of the end of mandated gasoline price ceilings. The report said assuming all other inputs remained constant on the most recently published petrol pricing template, an adjustment of the FX rate assumption to current levels raised ex-depot prices by approximately 20 per cent.
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