The recent action by Dangote Refinery to start selling petroleum products and purchasing crude oil in naira was applauded by the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
As per the Association, this development represents a noteworthy turning point in Nigeria’s endeavors to fortify its economic autonomy and diminish its reliance on foreign exchange.
The Federal Government of Nigeria and Dangote Refinery were commended for taking the initiative in a statement by NACCIMA National President Dele Kelvin Oye. It was noted that the naira-to-naira transaction model for crude oil and petroleum products, like diesel and Premium Motor Spirit (PMS), will have a positive effect on the macroeconomic climate of the country.
According to Oye, the abolition of oil marketers’ significant foreign exchange demands will relieve pressure on the naira, perhaps strengthening and stabilizing the currency. He claimed that this might have long-term positive effects on the economy, together with the Central Bank of Nigeria’s (CBN) cautious monetary policies and lower government deficit expenditure.
“The reduction of oil marketers’ massive foreign exchange demand will dramatically reduce pressure on the naira, freeing up foreign exchange for other key sectors of the economy. This, in turn, will help to the naira’s stabilization and potential appreciation, assuming the Central Bank of Nigeria (CBN) continues to implement prudent monetary policies and the government further reduces deficit budgeting and recurrent expenditure.”
He also emphasized how fuel may become more accessible and affordable for Nigerian customers.
“The availability and affordability of petroleum products for Nigerian consumers will be improved by the smooth integration of the Dangote Refinery into the domestic supply chain, with NNPC Ltd. providing crude oil and the refinery supplying equivalent value of PMS and diesel in naira. This development is a tribute to the government’s dedication to tackling the long-standing challenge of fuel scarcity and price instability in the country,” Oye said.
NACCIMA expressed hope that this program will help Nigeria diversify its economy and lessen its dependency on oil exports, and it praised the work of the technical and monitoring committees involved in its implementation.
The group reiterated its support for the Dangote Refinery and the government in making sure this effort is carried out successfully.
“As the business community in Nigeria, we are certain that this historic accomplishment will open the door to additional economic diversification, a decrease in the country’s dependency on oil exports, and an all-around strengthening of the Nigerian economy. We are ready to assist the government and the Dangote Refinery in the successful implementation of this game-changing initiative.”
