Naira-for-crude: LCCI reveals solution to crash fuel price in Nigeria

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According to the Lagos Chambers of Commerce and Industry, in order to drive down the price of Premium Motor Spirit (petrol), the Nigerian government should sell crude oil to Dangote Refinery at a rate of N1000 per dollar.

Gabriel Idahosa, the President of LCCI, revealed this in a statement on Friday.

His remarks coincide with the announcement made on Friday by Nigeria’s Minister of Finance, Wale Edun, that oil marketers would be able to buy fuel directly from Dangote Refinery as part of the Naira-for-crude agreement, ending Nigerian National Petroleum Company Limited’s exclusive purchasing rights.

The event came after petrol prices in Abuja increased to N1,030 per litre across all NNPCL retail locations on Wednesday.

Additionally, other petrol stations raised their fuel prices by N1,120 and N1,200 per liter.

Idahosa responded by emphasising that the Nigerian government should sell crude to Dangote Refinery and other refineries at a fixed price of N1000 per dollar in order to alleviate the elevated cost of fuel.

He claims that the Naira-for-crude agreement, which went into force on October 1, 2024, which subsidises the supply of crude to refineries, will have a knock-on effect on Nigeria’s economy and the financial hardships that Nigerians experience.

“Crude oil supplied to refineries in naira should be pegged at an exchange rate of N1,000 to one USD. This would significantly lower the cost of petrol for end users, thereby reducing logistics and transportation expenses.

“The ripple effect would stimulate economic activity and help alleviate the current financial hardships faced by Nigerians”, he stated.
ZINGTIE reminds readers that the Nigerian government has officially started selling Naira for crude oil to Dangote Refinery.

Friday’s Naira exchange rate in the official foreign exchange market was N1641.27 to the US dollar.

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