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Aliko Dangote, president of the Dangote Group, says the naira-for-crude policy enabled his refinery to reduce product prices consistently, guaranteeing availability for the overall benefit of Nigerians.
Dangote spoke when President Bola Tinubu visited the refinery on Thursday to launch the reconstruction of the deep-sea port access road through Epe, Ijebu-Ode.
The businessman called the policy the “most transformative initiative” of the current government.
“On your administration’s most transformative initiatives is the historic Naira-for-crude policy, which stands out as a clear testament to your administration’s commitment to economic recovery and national sovereignty,” he said.
“This bold policy has enabled us at Dangote Petroleum Refinery to reduce product prices consistently and guaranteeing availability for the overall benefit of Nigerians.
“Your Excellency, I know that to some people here in Nigeria, they might think that, petrol at less than N900 is expensive, but there is nowhere in West Africa that petrol is not selling above $1, which is N1,600.
“It has actually also helped significantly in stabilising the prices of petrol, diesel, jet air, LPG, polypropylene to the lowest level.
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“The effect of this development is the stabilisation of our currency, a critical element in the development of economic policy and budgeting by businesses.”
Dangote also praised the recently introduced ‘Nigeria First Policy’, which aims to drastically reduce the country’s reliance on foreign goods and services by prioritising local products in investment decisions, business operations, and consumption.
He said the policy aligns with the Dangote Group’s corporate vision of producing what the country consumes to promote self-sufficiency in meeting the basic needs of Nigerians. He argued that importing goods “means import of poverty and export of jobs”.
Nigeria officially began selling crude oil and refined petroleum products in naira on 1st October 2024, after the federal executive council approved a proposal by Tinubu directing the NNPC to sell crude oil to Dangote refinery and other refineries in the local currency.
However, the policy has faced challenges. In November last year, the refinery said the crude-for-naira initiative was struggling, citing supply problems.
On 10th March, the NNPC reportedly stopped the naira-for-crude deal until 2030, as the government-owned company had already sold all its crude oil in advance.
Nine days later, the Dangote refinery said it had temporarily stopped selling petroleum products in naira. The refinery said the decision was “necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars”.
But on 9th April, the federal government said the naira-for-crude deal would continue after the end of the first phase, which was 31st March.
On 9th May, Wale Edun, the minister of finance and coordinating minister of the economy, promised to provide further updates on the naira-for-crude deal soon.
