In a significant move to bolster the local economy and ensure the success of Nigeria’s largest private-sector investment in the oil and gas sector, President Bola Ahmed Tinubu has announced that the Nigerian National Petroleum Corporation (NNPC) will begin selling crude oil to the Dangote Refinery in Naira.
This decision is aimed at reducing the operational costs for the Dangote Refinery, enabling it to refine crude oil locally and sell petroleum products at more competitive prices. By facilitating the purchase of crude in Naira, the policy also aims to ease the pressure on Nigeria’s foreign exchange reserves, as transactions typically conducted in dollars will now be in the local currency.
The Dangote Refinery, owned by Africa’s richest man, Aliko Dangote, is poised to significantly impact Nigeria’s oil and gas industry. With a refining capacity of 650,000 barrels per day, it promises to meet Nigeria’s domestic demand for petroleum products, thereby reducing the nation’s dependence on imported fuel. This strategic partnership between the government and the private sector is expected to enhance energy security, create jobs, and stimulate economic growth.
President Tinubu highlighted that this move is part of his administration’s broader strategy to support indigenous businesses and promote economic stability. “This is a game-changer for our economy,” Tinubu said. “By allowing the Dangote Refinery to purchase crude oil in Naira, we are not only supporting a critical national asset but also strengthening our currency and economic sovereignty.”
The NNPC has assured that the transition will be seamless and that the quality and supply of crude oil to the refinery will not be compromised. This partnership is expected to boost investor confidence in Nigeria’s oil and gas sector, attracting further investments and fostering industrial development.
Economic analysts have lauded the initiative, noting that it will have a multiplier effect on the economy. By reducing the cost of fuel, it is anticipated that there will be lower transportation costs and a reduction in inflationary pressures, ultimately benefiting the average Nigerian.
As the Dangote Refinery prepares to commence operations, this policy intervention by President Tinubu marks a pivotal moment in Nigeria’s journey towards energy independence and economic resilience….Seē _ Morē