Billionaire businessman Aliko Dangote has announced that the introduction of the “naira for crude” policy is expected to reduce Nigeria’s demand for foreign exchange (FX) by 40%. Dangote made this statement on Tuesday during the launch of petrol production at his $20 billion Dangote Refinery in Lagos.
In an interview on Arise TV, Dangote praised President Bola Tinubu’s administration for creating a favorable environment for the refinery’s success and for implementing the innovative naira for crude and naira for product initiative. He highlighted that this policy will not only stabilize the Naira but also reduce the demand for dollars significantly.
“I would like to salute the people of Nigeria and President Bola Tinubu’s government for their role in creating an environment that has enabled us to achieve this milestone of providing energy for growth and prosperity,” Dangote said. “The introduction of the naira for crude and naira for product initiative will provide much-needed stability to the Naira and cut the demand for dollars by 40%. This initiative will also address issues like round-tripping.”
Dangote also emphasized that the new refinery will improve transparency and tracking of fuel consumption. “With the refinery operational, we will be able to accurately track the consumption of petrol in Nigeria. We can monitor each loaded truck and, where possible, track loaded ships. This will help in computing national consumption more precisely,” he explained.
In April, the Federal Government announced that indigenous refineries are now allowed to purchase crude oil either in naira or dollars. Additionally, it was reported that Nigeria’s total crude oil and condensate reserves have increased to 37.5 billion barrels as of January 1, 2024, with a life index of 68.01 years.
The Dangote Refinery, with a processing capacity of 650,000 barrels of oil per day, is set to produce more than half of its output as petrol, further enhancing Nigeria’s energy security and reducing reliance on imported fuel.
Discussion about this post