In a significant development that is set to benefit Nigerian consumers, Aliko Dangote, the President of Dangote Industries Limited, has praised the positive impact of President Bola Tinubu’s naira-for-crude swap deal on the Nigerian economy. According to Dangote, the deal has played a crucial role in driving down fuel prices across the country.
In an announcement shared on Saturday, Dangote Refinery revealed a new collaboration with MRS Oil Nigeria to offer petrol at a reduced price of N935 per litre. This partnership aims to pass on the benefits of lower fuel prices directly to consumers, a move that is expected to make petroleum products more affordable and accessible for Nigerians.
The new price is part of Dangote Refinery’s ongoing efforts to reduce the cost of Premium Motor Spirit (PMS). Just days before this announcement, the refinery had already lowered its selling price by N71, from N970 to N899.50 per litre for marketers. In addition, the refinery has extended credit facilities to marketers to facilitate smoother transactions. This price reduction has prompted other players in the oil sector, including the Nigerian National Petroleum Corporation (NNPC) Retail, to follow suit, also slashing their prices to N899 per litre.
Dangote attributed the success of these price cuts to the naira-for-crude deal, a key initiative that President Tinubu introduced to strengthen the Nigerian economy. The deal, which allows for oil transactions to be conducted in naira rather than dollars, has reduced Nigeria’s dependence on foreign currency for oil imports. This shift has helped stabilize the naira, improve Nigeria’s foreign exchange reserves, and contribute to the overall economic stability.
The new retail price of N935 per litre will initially roll out in Lagos, but plans are in place to expand this pricing to other regions starting Monday. Dangote emphasized that the primary goal of the Dangote Refinery is to provide high-quality, affordable petrol to Nigerians nationwide. He also called on other oil marketers, including NNPC and independent retailers, to join in this effort to lower prices and improve the overall quality of petroleum products.
“The Dangote Refinery was built with the interest of Nigerians in mind,” Dangote said. “We are committed to making sure that Nigerians have access to quality, affordable fuel that benefits both their vehicles and their finances.”
This initiative is part of Dangote Refinery’s larger strategy to increase the availability of locally refined petroleum products, thus reducing Nigeria’s reliance on imported fuel. With the federal government’s focus on domestic production and the ongoing reforms in the oil sector, including the naira-for-crude policy introduced in October, Nigeria is taking critical steps to improve its energy independence and reduce the cost of fuel for its citizens.
Back in September, President Tinubu’s administration approved the sale of crude oil to local refineries in naira, which has helped to stabilize the economy by reducing pressure on Nigeria’s foreign currency reserves. This policy, which took effect on October 1, is proving to be a major driver of the current fuel price reductions.
Dangote also took the opportunity to thank Nigerians for their continued support, as well as the government for fostering an environment that encourages investment in domestic refining capacity.
This move by Dangote Refinery marks an important milestone in the quest to make fuel more affordable for Nigerians while stimulating local production and reducing reliance on imported petroleum products. It’s a win for both consumers and the nation’s economy.
Stay tuned for more updates on this exciting development!