The Nigeria Employers’ Consultative Association (NECA) has commended the crude-for-naira agreement between the federal government and the Dangote Refinery saying the pact has the potential to end petrol scarcity, reduce pressure on foreign exchange demand in the country as well as cause a reduction in the pump price of petrol.
The director general of NECA, Mr Adewale-Smatt Oyerinde, stated this in a statement following the lifting of petrol from the Dangote Refinery by the Nigerian National Petroleum Company Ltd on Sunday.
“While the current pump price is way above the expected price due to dollar-denominated crude oil purchase, it is expected that the beginning of the crude-for-Naira scheme agreed on from October 1 will cause a reduction in general price of the pump price.
“This new direction will not only benefit the government, it will also have a massive impact on the business community and the Nigerian populace in general.
“It will moderate the cost of fuel, reduce the long queues at filling stations across the country and support the energy needs of small businesses.
“We also commend the federal government’s intention to set up a one-stop shop that would harmonize the interests of all stakeholders, including regulatory and security agencies, to ensure a seamless implementation of the initiative.
“Such one-stop-shop would not only enhance the swiftness of approvals for the lifting of refined products but also be cost-effective.”
He also pointed to a similar challenge in the local gas market and urged on the federal government to introduce the gas-to-naira scheme to support the local industries.
”Industries, particularly the manufacturing sector, have suffered significant production setbacks due to limited foreign exchange and instability in the naira, which has made it difficult to purchase adequate gas for production.
“We, therefore, urge the federal government to take similar steps to benchmark the price of gas in naira to support local industries, especially the manufacturing sector,” he added.
