Shareholders have commended President Bola Tinubu and the Federal Executive Council (FEC) for the continuation and institution of the naira-for crude policy as a national policy.
The federal government last week authorised the continuation of the naira-for-crude policy after the expiration of the initial six-month trial phase.
Under the ‘naira-for-crude, naira-for-products’ transaction arrangement, the Nigerian National Petroleum Company (NNPCL) Limited will sell crude oil to local refineries in naira, using Dangote Petroleum Refinery as the pilot. Also, such local refineries will sell their products to the domestic market using the national currency. The transaction arrangement officially took off on October 1, 2024.
Shareholders under the aegis of Association for the Advancement of Rights of Nigerian Shareholders (AARNS) said the continuation of the naira-for crude policy was a further indication that the Tinubu-led reforms were grounded in national priorities and development.
Reacting to the development, president, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, said steps taken so far by the government have shown that the economic reforms were well thought out, sustainable and inclusive.
He said the continuation of naira-for-crude would not only ensure stability in the retail Premium Motor Spirit or petrol market, but also provide Nigerian with opportunity to develop its local refining market.
He called on the Dangote Group, the main and immediate beneficiary of the policy, to reciprocate the governments gesture by listing its Dangote Petroleum Refinery on the stock exchange.
According to him, such listing, like other members of Dangote Group, will open up the benefits from the petroleum refinery value-chain to the generality of Nigerians, creating a sense of inclusiveness and common purpose.
He explained that the Dangote Refinery may explore various options of listing including listing by introduction, offer for sale, and initial public offering (IPO) among others, citing the listing of major oil and gas companies such as Seplat Energy and Aradel Plc.
He commended the immediate reduction in petrol price by Dangote Refinery in response to the continuation of the naira-for-crude policy, noting that there are all indications that the petrol price may drop further as the implementation of the policy progresses.
Umar said Aliko Dangote has shown unquestionable commitment as a patriotic entrepreneur, citing his plan to make Nigeria self -sufficient in food production as well as the development of the steel sector.
He said Dangotes efforts greatly contributed to making Nigeria self-sufficient in the cement sector.
Explaining further, Umar said the naira-for-crude, naira-for-products system would support the countrys quests for stable and positive foreign exchange (forex) position, currency and energy security.
He added that the policy has potential to contribute to the development of several sectors of the economy, including healthcare, agriculture and manufacturing sectors.
He said the latest upgrade of Nigerias sovereign rating by Fitch Ratings underscored positive global perception of the governments reforms.
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