Victor Ezeja
President of Dangote Group, Alhaji Aliko Dangote, has said he is ready to endure economic losses to ensure that Nigerians get cheap fuel supply.
As part of the agreements reached with the Nigeria National Petroleum Company Limited (NNPCL), Dangote has accepted to sell Petroleum products from his 650,000 barrels per day refinery in Nigeria’s local currency, the naira.
Join our WhatsApp ChannelThe $20 billion refinery which commenced operations in January had repeatedly cried out over challenges in sourcing crude oil domestically, making it resort to importation which comes at a higher cost.
President Bola Tinubu had in July directed the NNPCL to sell crude oil in naira to Dangote and other local refinery to reduce pressure on the local currency.
Following the approval of the Federal Executive Council, a committee to oversee implementation of the policy was formed. The committee led by Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, after engaging with the NNPCL, Dangote Refinery and other stakeholders on pricing modalities, announced on Friday that all arrangement have concluded with an agreement that crude oil will be sold to local refineries in naira in return for purchase of petroleum products in naira as well.
READ ALSO: NNPCL Will Be Sole Offtaker Of Dangote Refinery Petrol – Nigerian Govt
As NNPCL begins to lift petrol from Dangote Refinery from Sunday, 15th September, the company will be selling to them in naira.
Vice President, Oil and Gas, Dangote Industries Limited, Devakumar Edwin, who spoke during an X Space event hosted by ‘Nairametrics’ on Thursday, said Aliko Dangote had agreed to the federal government’s proposal to sell products from the NNPC to the government in naira, despite the likelihood of financial losses.
Edwin said Dangote is more concerned about resolving Nigeria’s foreign exchange problem as naira’s value keeps depreciating.
Edwin quoted Dangote saying: “We are going to accept this because the country desperately needs foreign exchange, and the value of the Naira is deteriorating every day. I understand that I am going to take a loss – because, by the time we sell the product and convert it to dollars, the exchange rate may have worsened.”
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
The government left him with no choice