The Nigeria Employers’ Consultative Association (NECA) has lauded the groundbreaking agreement between the Federal Government and Dangote Petroleum Refinery regarding the sale of petrol to the Nigerian National Petroleum Company Limited (NNPCL). NECA highlighted the agreement’s potential to resolve the recurring fuel scarcity and ease the pressure on foreign exchange reserves.
In a statement released on Monday, NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, praised the pricing arrangement that has facilitated the lifting of petrol from the Dangote refinery. Oyerinde remarked, “This development holds great promise to address the chronic fuel shortages in the country and ease the strain on the naira.”
He further explained that while current fuel prices remain higher than expected due to the dollar-based purchase of crude oil, the introduction of the crude-for-naira scheme, starting October 1, is likely to result in a reduction in pump prices. Oyerinde emphasized that this new strategy is set to benefit not only the government but also the broader business community and the Nigerian populace as a whole.
Oyerinde also pointed out that the agreement would help stabilize fuel costs, decrease long queues at petrol stations nationwide, and cater to the energy demands of small businesses.
Additionally, he praised the government’s plan to establish a one-stop shop for coordinating the interests of all stakeholders, including regulatory and security agencies, to ensure the smooth implementation of the initiative. This unified system, he noted, would speed up approvals for lifting refined products while also being more cost-efficient.
Addressing a related issue, Oyerinde drew attention to the challenges in the domestic gas market, where gas prices for local industries are pegged to the dollar. He noted that manufacturing industries have faced significant setbacks due to limited access to foreign exchange and fluctuations in the naira’s value, making it difficult for them to secure enough gas for production.
Oyerinde called on the Federal Government to implement a similar pricing model for gas, using naira benchmarks to support local industries, particularly in the manufacturing sector.
