The crude oil deal between the Federal Government and Dangote Refineries will end the perennial petrol scarcity and reduce pressure on Nigeria’s foreign reserve, the Nigeria Employers’ Consultative Association (NECA) has said.

Director-General of NECA, Adewale-Smatt Oyerinde, said the pricing agreement that led to the lifting of petrol from the Dangote Refinery has the potential to change the perennial fuel scarcity situation in the county and also reduce the pressure on the Naira.

He noted that while the current pump price was way above the expected price due to the dollar-denominated crude oil purchase, it was expected that the beginning of the Crude-for-Naira scheme agreed on from October 1 would cause a reduction in the general price of the pump price.

He stressed that the new direction would not only benefit the government but would also have a massive impact on the business community and the Nigerian populace in general.

The NECA chief said the measure would moderate the cost of fuels, reduce the long queues at filling stations across the country, and support the energy needs of small businesses.

While Oyerinde also commended the government’s intention to set up a one-stop shop that would harmonise the interests of all stakeholders, including regulatory and security agencies, to ensure a seamless implementation of the initiative, he said that such a one-stop-shop would not only enhance the swiftness of approvals for the lifting of refined products but also be cost-effective.

However, the DG identified a similar challenge in the local gas market, where the price of gas sold to domestic industries was benchmarked in dollars. According to him, 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.

He, therefore, urged the Federal Government to take similar steps to benchmark the price of gas in Naira to support local industries, especially the manufacturing sector.