The Nigeria Employers Consultative Association (NECA) has praised the recent agreement between the federal government and Dangote Refineries for the sale of petrol to the Nigerian National Petroleum Corporation Limited (NNPCL), marking what the association sees as a pivotal moment in Nigeria’s fuel industry. The deal is expected to end the country’s long-standing issue of fuel scarcity and ease the pressure on foreign exchange demand.
Director-General of NECA, Mr. Adewale-Smatt Oyerinde, expressed optimism about the pricing agreement, which will allow for the lifting of petrol from Dangote’s refinery. He remarked that this development could greatly improve fuel availability, stabilizing supply and lowering fuel costs in the long term. He also noted that the forthcoming “crude-for-naira” exchange scheme, set to begin on October 1, will help reduce the pump price of petrol, providing relief to consumers and businesses alike.
“This singular event has the potential to change the perennial fuel scarcity situation in the country and also reduce the pressure on the Naira,” Oyerinde said.
Positive Economic Impact for Nigerians
Oyerinde emphasized that the agreement is poised to have a massive positive impact on Nigeria’s business community and the general populace. The new direction will likely moderate fuel costs, significantly reduce long queues at filling stations, and alleviate the energy challenges faced by small businesses across the country.
The NECA DG further praised the federal government’s plan to establish a one-stop shop to coordinate stakeholders, regulatory bodies, and security agencies for the seamless implementation of the initiative. This, he said, would not only streamline the process of lifting refined products but also ensure cost-effectiveness.
A Call for Reform in the Gas Sector
Oyerinde also highlighted a similar issue in Nigeria’s domestic gas market, where the price of gas for local industries is pegged to the U.S. dollar. He pointed out that many manufacturers are struggling due to the scarcity of foreign exchange, leading to production setbacks. He urged the government to consider benchmarking gas prices in naira to provide relief to the manufacturing sector and support local industries.
