Emmanuel Ochayi
Dangote Refinery’s naira-for-crude strategy aims to reduce Nigeria’s dollar demand by 40%, according to Aliko Dangote. He praises Tinubu’s energy plan.
Dangote Refinery’s Impact on Nigeria’s Dollar Demand
The Dangote Refinery is set to revolutionise Nigeria’s energy sector by reducing the country’s reliance on foreign currency.
Join our WhatsApp ChannelAliko Dangote, CEO of Dangote Refineries, announced that the Federal Executive Council (FEC) has approved a plan to supply the refinery with crude oil in local currency, the naira.
This move is expected to cut Nigeria’s foreign exchange demand by at least 40%.
Speaking at a press conference, Dangote expressed his gratitude to President Bola Tinubu for implementing this strategy, which he believes will significantly stabilize the Naira.
“I want to personally also thank Mr. President for creating this idea of Naira for Crude and also Naira for the product. This will give a lot of stability for the Naira because you remove 40% of the demand for dollars in the market,” Dangote said.
Reducing the Pressure on the Naira
With the exchange rate currently hovering around N1600 to a dollar, the Dangote Refinery’s approach could relieve some of the pressure on the Naira.
The reduction in the demand for dollars is expected to help stabilize the local currency, making it less vulnerable to fluctuations in the international forex market.
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“This isn’t just about the refinery producing gasoline,” Dangote continued. “Today’s discussion is only to thank God almighty for bringing us into this period of now producing gasoline. I know that a lot of people think we won’t be able to deliver. But we’ve been able to deliver.”
Praise for Tinubu’s Administration
Dangote’s commendation of the current administration highlights the significance of this strategy in securing Nigeria’s energy future.
By reducing the dependency on foreign exchange for crude oil imports, the country is better positioned to achieve energy security and economic stability.
As Nigeria continues to face economic challenges, the Dangote Refinery’s role in the nation’s energy landscape is increasingly crucial.
The Naira-for-crude initiative not only promises to slash foreign exchange demand but also paves the way for a more self-reliant energy sector.
In conclusion, the Dangote Refinery’s innovative approach, backed by the Federal Executive Council and supported by President Tinubu, marks a significant step towards stabilizing the Naira and reducing Nigeria’s dollar demand.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
