Marketers, Senator laud Tinubu on order to supply local refineries crude in naira

Tinubu’s order won’t end Dangote Refinery woes, experts insist

Fuel marketers yesterday hailed the new directive by President Bola Tinubu to the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other refineries in naira instead of dollars.

The marketers expressed optimism that the decision would lower fuel prices nationwide, benefiting consumers and the economy.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) described the decision as a big win for the country and said it would help to crash the petrol price. NNPCL’s filling stations sell petrol for around N620 to N650, while others sell above N700.

Public relations officer of IPMAN, Okanlawon Olanrewaju, noted that President Tinubu’s crude sale in naira order would mitigate the frequent petrol scarcity and price hikes.

He said: “We thank the President for listening to the voice of the masses and marketers because we have repeatedly stated that the panacea to this frequent scarcity of petrol is for us to localise the sale of crude oil in Nigeria, especially in naira. These approvals are very significant to the Nigerian economy, especially the sale of crude to Dangote in naira. It will strengthen and the value will rise in the international market. This is one of the best developments in Nigeria’s oil sector.”

This was also echoed by Eche Idoko, publicity secretary of the Crude Oil Refiners Association of Nigeria, who said the supply of crude to local refineries in naira will undoubtedly bring down the cost of petrol and strengthen our currency.

Similarly, Senator Musa, who is the Chairman, Senate Committee on Finance, in a statement has commended the President for his forward-thinking and impactful decision to approve the sale of crude oil to local refineries in Nigeria using naira.

“This strategic move is a significant milestone in our nation’s journey towards economic self-sufficiency and stability. This will likely lead to increased efficiency within our local refineries, boosting domestic production and ensuring a more consistent and affordable supply of refined petroleum products for all Nigerians,” he said.

Also, the founder and CEO of Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said the decision will ease the current pressure on petroleum products pricing in Nigeria. However, Muda noted that the major challenge may be the capacity of NNPCL to supply the crude.

However, the Managing Partner, BBH Consulting and Convener, Public Interest Advocacy Network (PIAN), Ameh Madaki, believes that Tinubu’s order will not solve Dangote Refinery’s crisis. He said this was because the country had no spare crude oil to sell to any refinery.

According to him, the crude oil forward sale contracts secured for Nigeria by NNPCL meant that there was barely any production from the current 1.2 million barrels per day to sell to local refineries. Ameh said the best way out was to sell the crude oil for domestic consumption at the wellhead cost of production.

Similarly, an energy expert, Joseph Eleojo, said: “Where is NNPCL getting the crude to sell to Dangote and other refineries from? This goes to tell Nigerians why the local refineries have not worked for 35 years. The decision to sell crude to Dangote in naira is a wonderful decision as it will lessen the pressure on Dangote and the other refineries from sourcing FX to buy crude, but Nigerians should not expect drastic price discounts because crude oil is sold to the local refineries in naira.”