By Hussein Olanrewaju
The Nigeria Employers’ Consultative Association (NECA) has praised the recent agreement between the Federal Government and Dangote Refineries regarding the sale of Premium Motor Spirit to Nigerian National Petroleum Corporation Limited (NNPC). NECA believes this deal could end petrol scarcity and reduce the pressure on foreign exchange demand in the country.
In a statement, NECA Director-General Mr. Adewale-Smatt Oyerinde lauded the landmark pricing agreement that facilitated the lifting of petrol from the Dangote refinery. Oyerinde expressed optimism that this development could transform the ongoing fuel scarcity issue and alleviate the pressure on the naira.
Oyerinde noted that the current high pump price was due to the dollar-based crude oil purchase. However, the introduction of the crude-for-naira scheme starting October 1 is expected to lower the petrol pump price. He emphasized that this shift would not only benefit the government but also significantly impact businesses and the general Nigerian population.
The NECA DG highlighted that this measure would help moderate fuel costs, reduce long queues at filling stations, and support the energy needs of small businesses. Oyerinde also commended the government’s plan to establish a one-stop shop to streamline the interests of all stakeholders, including regulatory and security agencies, ensuring smooth implementation of the initiative. He stressed that such a shop would expedite approvals for lifting refined products and be cost-effective.
Addressing a similar issue in the local gas market, Oyerinde pointed out that gas prices for domestic industries are benchmarked in US dollars, posing challenges for the manufacturing sector. He urged the Federal Government to adopt a similar approach to benchmark gas prices in naira to support local industries, particularly manufacturing.
On July 29, the Federal Executive Council approved a proposal by President Bola Tinubu directing the NNPC to sell crude oil to the Dangote refinery and other refineries in naira.
