Group Urges Tinubu to Charge Dangote Refinery in Naira, Not Dollars for Crude Oil Supply
- Arewa Youths has urged the president to consider selling crude oil to Dangote Refinery in naira rather than in dollars.
- Selling crude oil to DPR in foreign currency is going to be counterproductive as far as the Nigerian masses are concerned.
- The organization pointed out that persistent inflation is primarily attributed to the elevated costs of fuel.
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The Arewa Youth Ambassadors (AYA), a collective of youth organizations in the 19 Northern states, has expressed its stance on the supply of crude oil to Dangote Petroleum Refinery (DPR).
During a press conference in Abuja, Muktar Abdurrahman Auwal, the group's secretary, appealed to President Bola Tinubu's administration, urging them to consider selling crude oil to DPR in naira rather than in dollars.
Source: UGC
This follows the anticipation of the Dangote Refinery coming into full operation and products becoming available in the market.
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Selling in dollars is counterproductive
So far, the refinery has acquired six million barrels of crude oil from the Nigerian National Petroleum Company Limited (NNPCL) and delivered them to its two Single Point Mooring (SPM) sites located 25 kilometres offshore.
According to Daily Trust, the group lamented the difficulty Nigerians and Nigeria face with the scarcity of foreign exchange.
Auwal said:
“Selling crude oil to DPR in foreign currency is going to be counterproductive as far as the Nigerian masses are concerned."
The vulnerability of the naira due to foreign exchange has caused untold hardship to the majority of Nigerians.
The organization pointed out that persistent inflation is primarily attributed to the elevated fuel costs.
Consequently, the current prices of goods and services have hindered the average citizen from reaping the benefits of democracy in Nigeria.
Dangote to sell petrol to marketers in naira
Contrary to an earlier statement by the refinery's management, petroleum products will now be sold to marketers in naira and not dollars.
In September 2023, Devakumar Edwin, the Group Executive of Dangote Refinery, revealed in an interview with S&P Global Commodity Insights that oil refined in the facility would be bought in US dollars, not naira.
He defended the decision by saying the refinery's location is in a free trade zone.
He said:
"That Nigerian oil will be purchased in US dollars, not naira as some reports had suggested because it is located in a free zone on the outskirts of Lagos."
But in a new development this month, following deliberations with the company, oil marketers announced that petroleum products from the Dangote refinery would be sold in naira and not in the US dollar as previously speculated.
Dangote refinery secures marketers for distribution of products
In related news, Legit.ng reported that the Dangote Refinery has commenced the registration process for distributors involved in the lifting and distribution of its refined petroleum products nationwide.
The registration has been completed for members of three prominent associations, collectively representing 75% of the total market share in Nigeria.
The associations include the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and the Major Oil Marketers Association of Nigeria (MOMAN).
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Source: Legit.ng
