Naira-for-crude deal helping Nigerians pay less for petrol
Dangote Petroleum Refinery implemented a naira-for-crude oil agreement to reduce petrol prices in Nigeria.
The initiative supports price stability and contributes to national economic development.
Collaboration with the Nigerian government aligns with the 'Nigeria First Policy' to prioritize local goods and services.
The Dangote Petroleum Refinery has announced that its naira-for-crude oil agreement with the Nigerian government has enabled it to lower petrol prices, ultimately reducing costs at fuel stations for Nigerian consumers.
In a statement, the company's Group Chief Branding and Communications Officer, Anthony Chiejina, said that even though global crude oil prices keep changing, Dangote has continued to reduce petrol prices and promised to keep them stable and affordable.
The company reaffirmed that price stability is part of its broader mission to contribute positively to national economic development.
The statement read:
'We are immensely grateful to President Bola Tinubu for making this possible through the commendable naira-for-crude initiative, which has enabled us to consistently reduce the price of petroleum products for the benefit of all Nigerians, ' the statement stated.
'Our approach aligns with the objectives of the Federal Government's 'Nigeria First Policy', which promotes the prioritisation of locally-produced goods and services.
Naira to crude controversy
In March, reports emerged that the Nigerian National Petroleum Company (NNPC) had halted its naira-for-oil program, which had allowed local refineries to buy crude oil using the Nigerian currency. The news sparked concerns that the move could lead to a rise in fuel prices and increased pressure on the foreign exchange market.
However, NNPC clarified that the agreement was a six-month pilot deal, dependent on crude availability, and scheduled to expire at the end of March 2025.
Since the start of operations in 2023, NNPC has supplied the Dangote Refinery with over 84 million barrels of crude oil.
The state oil company also confirmed it has begun talks with Dangote Refinery to extend the naira-denominated crude oil supply contract, reinforcing ongoing collaboration to ensure energy stability.
By refining oil within Nigeria at its large refinery, Dangote said it is helping the country save foreign exchange, improve energy security, and boost the economy, supporting President Tinubu's economic recovery plan.
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