NECA commends the landmark agreement between the Federal Government and Dangote Refineries on fuel supply, aiming to improve energy sufficiency in Nigeria. This agreement is expected to end fuel scarcity, reduce FOREX pressure, and stabilise pump prices, benefiting businesses and the public.
The Nigeria Employers’ Consultative Association (NECA) praised the Federal Government and Dangote Refineries for their landmark energy sufficiency agreement, which focuses on the sale of petrol to NNPC Limited. According to NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, this agreement could bring an end to Nigeria’s long-standing fuel scarcity issue and ease the burden on the country’s foreign exchange.
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Mr. Oyerinde highlighted that the deal would reduce petrol pump prices as the Crude-for-Naira scheme kicks off on 1st October. Although current prices are high due to Dollar-based crude purchases, this new arrangement should stabilise prices and ease pressure on the Naira.
This development will not only benefit the government but will also positively impact Nigeria’s business sector and general public. It is expected to ease fuel costs, eliminate long queues at petrol stations, and address the energy needs of small businesses.
Mr. Oyerinde also supported the government’s plan to establish a one-stop-shop that would streamline the interests of stakeholders and fast-track the approval process for refined product lifting. This step would improve the efficiency and cost-effectiveness of the system.
The NECA boss also called for a similar strategy to be applied in Nigeria’s gas market. He stressed that industries, especially in the manufacturing sector, face challenges due to gas pricing in US Dollars. Benchmarking gas prices in Naira could support local industries and ease production challenges caused by FOREX limitations and currency instability.
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