Nigeria’s oil marketers predict a significant drop in petrol prices if crude oil is sold to local refineries, including the Dangote Refinery, in Naira. According to the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, this move could bring relief to consumers by eliminating costs associated with importing crude oil.
Gillis-Harry’s statement follows a directive from President Bola Ahmed Tinubu, instructing the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to local refineries, including the Dangote Refinery, using Naira instead of foreign currency. The directive aims to strengthen the country’s local refining capacity and reduce dependency on imported fuel.
To ensure the effective implementation of this policy, the Minister of Finance, Wale Edun, recently held discussions with key stakeholders, including Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS). These meetings are part of the government’s efforts to facilitate the transition to domestic crude oil sales in Naira.
Gillis-Harry emphasized that by eliminating the logistics costs and importation charges tied to bringing in foreign crude oil, the price of refined products should see a “massive” reduction.
Adding to this, Adedeji highlighted that the policy could save Nigeria approximately $7.3 billion annually, further bolstering the country’s economy.
