No More Dollar: Dangote Refinery to Accept Another Means of Payment for Petrol Sales

• A recent deal between the federal government and Dangote Refinery over the selling of petrol has been praised by NECA
• According to report, this breakthrough might eliminate the nation's gasoline deficit and ease pressure on the need for foreign currency
• Petrol prices are expected to drop with the implementation of the crude-for-naira program, which was scheduled to begin on October 1

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Nigeria Employers’ Consultative Association has commended the agreement between the federal government and Dangote Refinery on the sale of Premium Motor Spirit to Nigerian National Petroleum Corporation Limited (NNPCL).

The association claimed that the development signifies the potential to put an end to the country's petrol shortage and relieve pressure on the demand for foreign money.

The price arrangement that resulted in the lifting of petrol from the Dangote Refinery was praised by the association's director-general, Adewale-Smatt Oyerinde.

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Oyerinde said:

“This singular event has the potential to change the perennial

Crude-for-naira program to commence soon

The NECA DG stated that although the present pump price was much higher than anticipated due to the acquisition of crude oil denominated in dollars, it was anticipated that the start of the crude-for-naira program, which was decided upon for October 1, would result in a decrease in the price of petrol.

The NECA boss said:

“This new direction would not only benefit the Government, it would also have a massive impact on the business community and the Nigerian populace in general.”

He added in a Punch report that the action will help small businesses with their energy needs and regulate fuel prices as well as shorten nationwide filling station lines.

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In order to guarantee the initiative's smooth execution, Oyerinde also applauded the government's plan to establish a one-stop shop that would harmonise the interests of all parties, including law enforcement and security organisations.

He emphasised that a one-stop shop of this kind would be economical as well as expedite authorisation for the lifting of refined products.

He discovered a comparable issue in the local gas market, where domestic industries' gas prices were benchmarked in US dollars.

In the meantime, Oyerinde said that the manufacturing sector, in particular, had seen severe output setbacks due to restricted foreign exchange and naira volatility, which had made it challenging to get enough gas for manufacturing.

He pleaded for the Federal Government to act similarly and set a naira standard for gas prices in order to boost regional businesses, particularly the manufacturing sector.

A proposal by President Bola Tinubu instructing the Nigerian National Petroleum Company to sell crude oil to the Dangote refinery and other refineries in naira was approved by the Federal Executive Council on July 29.

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Speaking on the prospect of Dangote refinery, Samuel Oyekanmi, a research and insight associate with Norrenberger Financial Group said,

"The full implementation of Dangote Refinery is a potential growth propeller, however it will take time before we start seeing the full impact on the economy."

Marketers ready to buy Dangote petrol

Legit.ng earlier reported that the NNPCL has successfully removed Premium Motor Spirit (PMS), popularly known as petrol, from the Dangote Refinery using its first fleet of trucks.

Over a hundred trucks from the country's oil corporation arrived at the refinery ahead of the start of the petrol lifting from the 650,000 barrels per day facility, according to an earlier report.

On Sunday, September 15, 2024, the Dangote Group posted a video tweet showing the trucks filling petrol from the refinery in Ibeju-Lekki, Lagos state.

Source: Legit.ng