The Nigeria Employers’ Consultative Association (NECA) has praised the recent agreement between the Federal Government and Dangote Refinery, calling it a significant step toward stabilizing Nigeria’s fuel supply and easing economic pressures.
The deal, which involves the sale of petrol from Dangote’s refinery to the Nigerian National Petroleum Corporation Limited (NNPCL), is expected to bring multiple benefits to both the government and the wider economy.
According to NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, the agreement could mark the end of Nigeria’s recurring fuel shortages. The current petrol price is high due to the dollar-based cost of crude oil, but the new crude-for-naira scheme set to start from October 1 may help bring down fuel prices.
“This singular event has the potential to change the perennial fuel scarcity situation in the country and also reduce the pressure on the Naira.
”While the current pump price is way above the expected price due to dollar-denominated crude oil purchase, it is expected that the beginning of the crude-for-Naira scheme agreed on from October 1 will cause a reduction in general price of the pump price.
“This new direction will not only benefit the government, it will also have a massive impact on the business community and the Nigerian populace in general.
”It will moderate the cost of fuel, reduce the long queues at filling stations across the country and support the energy needs of small businesses.
”We also commend the federal government’s intention to set up a one-stop shop that would harmonize the interests of all stakeholders, including regulatory and security agencies, to ensure a seamless implementation of the initiative.
”Such one-stop-shop would not only enhance the swiftness of approvals for the lifting of refined products but also be cost-effective.”
The NECA DG identified “a similar challenge in the local gas market, where the price of gas sold to domestic industries is benchmarked in US dollars.
”Industries, particularly the manufacturing sector, have suffered significant production setbacks due to limited foreign exchange and instability in the naira, which has made it difficult to purchase adequate gas for production.
”We, therefore, urge the federal government to take similar steps to benchmark the price of gas in naira to support local industries, especially the manufacturing sector.”
