Aliko Dangote, President of Dangote Group, has stated that the Federal Government’s naira-for-crude policy is directly responsible for the current stabilisation in domestic fuel prices across Nigeria.
He made this known on Thursday during President Bola Tinubu’s official visit to the Dangote Petroleum Refinery, where the President also flagged off the reconstruction of the deep-sea port access road via Epe, Ijebu-Ode.
Describing the initiative as the “most transformative” policy under the current administration, Dangote said the directive mandating local crude oil sales in naira has enabled his refinery to consistently lower product prices and improve availability across the downstream market.
“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 noted that the policy has significantly contributed to bringing down domestic prices of petroleum products such as petrol, diesel, jet fuel, liquefied petroleum gas (LPG), and polypropylene. According to Dangote, current petrol prices in Nigeria remain below N900 per litre, while the product sells for over N1,600 across other West African countries.
The naira-for-crude arrangement was formally launched on October 1, 2024, following the approval of the Federal Executive Council, which authorised the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to domestic refineries, including Dangote Petroleum Refinery, in local currency.
Although the policy faced temporary disruptions, including the suspension of supply by the NNPC in March due to prior crude commitments, the Federal Government reaffirmed its continuation in April, stating that the next phase of implementation would follow the expiration of the initial phase on March 31.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, also confirmed on May 9 that additional guidance on the structure and sustainability of the policy would be announced.
Dangote emphasised the broader macroeconomic benefits of the policy, particularly its role in supporting the naira and improving fiscal planning.
“This bold policy has enabled us at Dangote Petroleum Refinery to reduce product prices consistently and guarantee availability for the overall benefit of Nigerians. 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 said.
In addition, Dangote commended the recently introduced “Nigeria First Policy,” which prioritises local products in investment decisions and business operations. He aligned the group’s strategy with this initiative, stating that producing locally and reducing reliance on imports was vital to safeguarding jobs and driving industrial growth.
“We cannot continue to import poverty and export jobs,” Dangote said, reiterating that the group remains committed to the national objective of self-sufficiency in energy, pharmaceuticals, and essential commodities.
The Dangote Refinery, with a capacity of 650,000 barrels per day, is a central component of the government’s industrial policy, aimed at reducing Nigeria’s dependence on imported petroleum products. The success of the naira-for-crude initiative is viewed as critical to improving Nigeria’s trade balance, strengthening the local currency, and securing long-term energy independence.
