The Nigeria Employers Consultative Association (NECA) has applauded the recent agreement between the federal government and Dangote refineries regarding the sale of petrol to the Nigerian National Petroleum Corporation Limited (NNPCL). NECA views this agreement as a significant development that could potentially end petrol scarcity and ease the pressure on foreign exchange demand.
In a statement made in Lagos, NECA Director-General Mr. Adewale-Smatt Oyerinde expressed his approval of the pricing agreement. He highlighted that this development has the potential to address the ongoing fuel scarcity and alleviate pressure on the Naira. While acknowledging that the current pump price is high due to dollar-denominated crude oil purchases, he anticipates that the transition to the crude-for-Naira scheme, starting October 1, will lead to a reduction in fuel prices.
Oyerinde emphasized that this initiative will benefit both the government and the business community by lowering fuel costs, reducing long queues at filling stations, and supporting the energy needs of small businesses. He also praised the federal government’s plan to establish a one-stop shop to streamline stakeholder interests, including regulatory and security agencies, to ensure efficient implementation of the initiative.
Furthermore, he noted a similar issue in the local gas market, where gas prices are also pegged to US dollars. This has caused production difficulties for industries, particularly in the manufacturing sector, due to foreign exchange limitations and Naira instability.