The Nigeria Labour Congress (NLC) has called on the
Federal Government to sell crude oil to the Dangote Refinery in Naira instead
of dollars, saying the move would help cut fuel prices and boost local refining
capacity.
Lagos State NLC Chairperson, Funmi Sesi, made the
appeal on Tuesday during a tour of Dangote Petroleum Refinery and Fertilizer
Ltd. facilities in Ibeju-Lekki by members of the Labour Writers Association of
Nigeria (LAWAN) and NLC officials.
Sesi argued that compelling Dangote to import crude or
buy local crude in foreign currency would undermine the promise of cheaper fuel
for Nigerians.
“This country has crude oil in abundance. Why is
Dangote still importing crude or paying in hard currency for locally produced
crude?” she asked. “If the government truly wants to lower fuel prices and
support local refining, it must sell crude oil to Dangote in Naira.”
Reducing Costs and Boosting Industrial
Growth
The union leader said sourcing crude in local currency would significantly
reduce operational expenses, making a sustainable drop in pump prices possible.
She commended Dangote Group’s investments for creating
jobs, bridging Nigeria’s fuel supply gap, and strengthening industrial
capacity.
“Today, we have seen the refinery, the fertilizer
plant, and other investments in this axis. The size and impact are enormous and
impressive,” she said, describing the projects as clear contributions to
industrialisation and economic growth.
Following the removal of petrol subsidies, PMS prices
soared nationwide. Sesi said the Dangote Refinery’s entry into the market has
helped stabilise fuel prices and demonstrated the benefits of private sector
leadership in the oil industry.
With a 650,000-barrel daily capacity, the refinery can
meet Nigeria’s domestic demand and serve regional markets. She also praised its
production of Euro-5-compliant fuel, which contains lower sulphur content and
aligns with global environmental standards.
Fertilizer Exports and Food Security
Sesi applauded Dangote Fertilizer Company’s export success and urged government
backing to improve food security and reduce the need for imported agricultural
inputs.
Dangote Refinery’s Plans for Energy
Security
Dangote Industries Vice President for Oil and Gas, Devakumar Edwin, said the
refinery is reducing Nigeria’s reliance on imported refined products and
building a competitive, sustainable refining industry.
He announced plans to deploy 4,000 Compressed
Natural Gas (CNG)-powered trucks to distribute petroleum products
nationwide, lowering logistics costs — a major factor in pump prices.
“The deployment of 4,000 CNG-powered trucks will help
pass down domestic refining benefits and lower product prices to consumers,”
Edwin said, noting that CNG trucks are cheaper to operate and more
environmentally friendly.
Policy Background
In April, the Federal Government reaffirmed its commitment to the Crude and
Refined Product Sales in Naira initiative, aimed at reducing foreign exchange
pressures and ensuring long-term energy security. However, the policy was
reported to have ended in March.
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