The Dangote Petroleum Refinery says its groundbreaking naira-for-crude agreement with the Nigerian government is directly helping to reduce petrol prices, bringing much-needed relief to consumers at the pump.
According to a statement issued by the company’s Group Chief Branding and Communications Officer, Anthony Chiejina, the initiative has enabled Dangote to continue lowering petrol costs despite global fluctuations in crude oil prices.
He emphasized the company’s commitment to maintaining stable and affordable fuel rates for Nigerians.
“We are immensely grateful to President Bola Tinubu for making this possible through the commendable naira-for-crude initiative, which has enabled us to consistently reduce the price of petroleum products for the benefit of all Nigerians,” Chiejina stated.
He added that the refinery’s pricing strategy aligns with the Federal Government’s ‘Nigeria First Policy’, which prioritizes the use of locally-produced goods and services as a way to stimulate the economy and safeguard national interests.
The naira-for-crude policy, however, has not been without controversy. Earlier this year, reports emerged that the Nigerian National Petroleum Company (NNPC) had suspended the program, sparking fears of rising fuel costs and increased strain on Nigeria’s foreign exchange reserves.
In response, NNPC clarified that the arrangement was a six-month pilot scheme, subject to crude availability and scheduled to expire at the end of March 2025.
Since the start of operations in 2023, NNPC has supplied Dangote Refinery with over 84 million barrels of crude oil.
The state-owned oil firm also confirmed that discussions are underway to extend the naira-based crude supply contract, reinforcing their partnership aimed at achieving energy stability.
Dangote maintains that refining oil locally not only lowers costs but also strengthens energy security, saves foreign exchange, and supports economic recovery, objectives that closely align with President Tinubu’s broader economic reform agenda.
The company reaffirmed its “unwavering commitment to operational excellence and national development,” assuring stakeholders, including consumers, partners, and the government, of its continued dedication to delivering long-term value and boosting Nigeria’s economic growth.
