Oil & Gas Suppliers Back FG’s Sale Of Crude To Local Refineries In Naira
The Natural Oil and Gas Suppliers Association of Nigeria has backed the directive of the federal government to sell crude oil to Dangote and other local refineries in Naira.
The Federal Executive Council had last month accepted a suggestion put forward by President Bola Tinubu to sell crude oil to Dangote and other local refineries in Naira.
The Dangote Refinery currently needs 15 shipments of crude oil annually, amounting to a total cost of $13.5bn.
The NNPC Ltd had pledged to provide four of these cargoes.
The FEC also agreed to make available 450,000 barrels for local consumption, which will be offered to Nigerian refineries in Naira, with the Dangote Refinery being the initial test.
The exchange rate will remain constant throughout this transaction.
Speaking on the development, the National President of NOGASA, Ben Korie, called on refineries to also reciprocate the government’s efforts by selling their petroluem products in Naira to oil marketers.
He said, “Firstly, regarding refined products, we must foster a competitive environment to ensure the healthy circulation of petroleum products, and to this end I commend Aliko Dangote for his monumental contribution to our industry through the establishment of the largest refinery in Nigeria.
“This development promises substantial benefits, including enhanced supply, increased competition, and a bolstering of our national economy and currency.
“To ensure a balanced distribution, I urge that Dangote’s refined products be made available to a broader range of stakeholders, including NNPC Trading, NNPC Retail, DAPPMAN, MOMAN, IPMAN, PETROAN, and NOGASA. This inclusivity will facilitate sustainable and widespread distribution across the country.
“Furthermore, the federal government should expedite the commencement of the Port Harcourt refinery slated for September. This will help alleviate current shortages and ensure that products are distributed among the same stakeholders.
“I also want to express our support for Mr. President’s directive to sell crude oil in Naira. We hope that our refineries will reciprocate by selling refined products in Naira, thus stabilizing the market.”
On the issue of smuggling, Korie said there is a need to redesign distribution channels to prevent illegal exportation of petroleum products.
“Strengthening our security agencies, especially at border points, with necessary equipment and support is crucial. Additionally, providing logistics and drones for surveillance will help combat smuggling and theft effectively,” he added.
ENDS
Oil & Gas Suppliers Back FG’s Sale Of Crude To Local Refineries In Naira is first published on The Whistler Newspaper
