‘It’ll reduce pressure on forex demand’ — NECA commends FG, Dangote refinery crude oil deal
Adewale-Smatt Oyerinde, the director-general of NECA, described the agreement as a landmark that could signal the end of petrol scarcity and also lead to reduced pressure on FOREX demand.
ENERGY SUFFICIENCY: NECA hails the Federal Government and Dangote Refineries for the landmark agreement
The Nigeria Employers’ Consultative Association (NECA) has commended the agreement between the federal government and Dangote refinery on the sale of premium motor spirit (PMS), also known as petrol, to the Nigeria National Petroleum Corporation (NNPC) Limited.
Adewale-Smatt Oyerinde, the director-general of NECA, described the agreement as a landmark that could signal the end of petrol scarcity and also lead to reduced pressure on FOREX demand.
Oyerinde, who spoke in Lagos, 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 expressed optimism that the beginning of the crude-for-naira scheme agreed on from 1st October will cause a reduction in the general price of the pump price.
The NECA boss averred that “this new direction would not only benefit the government, but it would also have a massive impact on the business community and the Nigerian populace in general”.
He observed that 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.
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 stated 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.
The NECA DD identified a similar challenge in the local gas market where the price of gas sold to domestic industries is benchmarked in US dollars.
He observed that 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 urged the federal government to take similar steps to benchmark the price of gas in Naira to support local industries, especially the manufacturing sector.
