…calls it a boost for Nigeria’s economy
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has commended the recent move by Dangote Refinery to commence naira-denominated crude oil purchases and petroleum product sales.
According to the Association, the development marks a significant milestone in Nigeria’s efforts to strengthen its economic sovereignty and reduce dependence on foreign currency.
Dele Kelvin Oye, National President of NACCIMA, In a statement, commended both Dangote Refinery and the Federal Government of Nigeria for initiating the move, noting that the naira-to-naira transaction model for crude oil and petroleum products, such as Premium Motor Spirit (PMS) and diesel, will positively impact the nation’s macroeconomic environment.
Oye opined that the elimination of large foreign exchange demands by oil marketers will ease pressure on the naira, helping stabilize and potentially strengthen the currency. This, he said, coupled with prudent monetary policies from the Central Bank of Nigeria (CBN) and reduced government deficit spending, could lead to long-term economic benefits.
“The elimination of the huge foreign exchange demand by oil marketers will significantly ease the pressure on the naira, freeing up foreign exchange for other critical sectors of the economy. This, in turn, will contribute to the stabilization and potential appreciation of the naira, provided that the Central Bank of Nigeria (CBN) continues to deploy prudent monetary policies and the government further reduces deficit budgeting and recurrent expenditure,”
He also highlighted the potential for increased availability and affordability of fuel for Nigerian consumers.
“The seamless integration of the Dangote Refinery into the domestic supply chain, with NNPC Ltd. providing crude oil and the refinery supplying equivalent value of PMS and diesel in naira, will enhance the availability and affordability of petroleum products for Nigerian consumers. This development is a testament to the government’s commitment to addressing the longstanding challenge of fuel scarcity and price volatility in the country,” Oye stated
NACCIMA applauded the efforts of the technical and monitoring committees involved in the execution of this initiative, expressing optimism that it would contribute to Nigeria’s economic diversification and reduce its reliance on oil exports.
The organization reaffirmed its support for the government and the Dangote Refinery in ensuring the successful implementation of this initiative.
“As the Nigerian business community, we are optimistic that this historic achievement will pave the way for further economic diversification, reduced reliance on oil exports, and the overall strengthening of the Nigerian economy. We stand ready to support the government and the Dangote Refinery in the successful implementation of this game-changing initiative.”
