President of Dangote Group, Aliko Dangote, has disclosed that petrol prices in Nigeria remain below N900 per litre due to the Federal Government’s naira-for-crude policy, contrasting with prices exceeding N1,600 per litre across other West African countries.
Speaking during President Bola Ahmed Tinubu’s official visit to the Dangote Petroleum Refinery in Lagos on Thursday, Dangote highlighted the impact of the policy on domestic price stability and product availability.
He described the naira-for-crude exchange mechanism as the administration’s most transformative economic initiative to date.
“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,” Dangote said.
He stated that the local currency crude supply arrangement had allowed the refinery to maintain consistent product pricing across refined fuels, including petrol, diesel, jet fuel, liquefied petroleum gas (LPG) and polypropylene.
According to Dangote, this policy has positioned Nigeria as one of the lowest-priced petrol markets in the region.
“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,” he said.
The naira-for-crude initiative, officially launched on October 1, 2024, allows the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to local refiners in naira.
The Federal Executive Council approved the arrangement to support foreign exchange management, enhance energy self-sufficiency, and stabilise domestic fuel prices.
Despite operational challenges earlier this year, including a temporary suspension of crude supply in March due to forward contracts, the Federal Government announced in April that the naira-for-crude programme would continue beyond its initial March 31 deadline.
Minister of Finance Wale Edun confirmed in May that further guidance on the policy’s structure would be released.
Dangote said the policy had strengthened macroeconomic stability by supporting the naira and enabling more accurate business budgeting and economic forecasting.
“The effect of this development is the stabilisation of our currency, a critical element in the development of economic policy and budgeting by businesses,” he added.
He also reiterated his support for the newly introduced “Nigeria First Policy,” which seeks to reduce import dependency by prioritising local content in business and investment decisions.
Dangote described the importation of essential goods as a driver of poverty and unemployment, urging broader support for domestic production.
The Dangote Petroleum Refinery, with an installed refining capacity of 650,000 barrels per day, is currently the largest single-train refinery in the world.
It plays a central role in Nigeria’s strategy to reduce petroleum product imports and achieve energy security.
