FG, NEPZA, Dangote Refinery Join Forces to Cut Petrol Prices, Boost Naira

The Nigeria Export Processing Zones Authority (NEPZA), the Federal Government’s One-Stop-Shop Committee on Crude Sales in Naira, and the Dangote Refinery and Petrochemicals Free Zone Enterprise have reached a significant agreement to accelerate the implementation of a presidential directive. This directive aims to strengthen Nigeria’s energy security by enabling the sale of crude oil to local refineries in naira instead of dollars.

This strategic partnership was formalized on Tuesday during a high-level courtesy visit to NEPZA’s Managing Director, Olufemi Ogunyemi. The alliance is designed to eliminate regulatory hurdles and create a smooth framework for domestic crude transactions, emphasizing the use of the naira to reduce reliance on foreign currencies.

The move comes at a critical moment, as global crude prices soar due to recent tensions between Israel and Iran—though currently on hold—causing disruptions in oil markets and increasing the cost of fuel imports.

As a result, petrol prices in Nigeria have surged to unprecedented levels, hitting N955 per litre in Abuja and N915 in Lagos, deepening the economic strain on citizens already battling currency devaluation.

Speaking at NEPZA’s headquarters in Abuja, Ogunyemi described the development as a pivotal shift in Nigeria’s economic and energy landscape.

“The collaboration between NEPZA, the One-Stop-Shop Committee on the Sale of Crude in Naira, and the Dangote Refinery & Petrochemicals Free Zone Enterprises represents a dedicated effort to implement the president’s directive aimed at reducing domestic fuel prices, achieving energy security, and stimulating economic growth,” he said.

He highlighted the Dangote Refinery’s successful establishment as a milestone already halfway to securing energy independence. “This refinery isn’t just a national asset—it’s a Free Zone enterprise benefiting from federal incentives. The next goal is to leverage this national pride to drive affordable and accessible energy,” Ogunyemi added.

NEPZA, which played a key supervisory role in the refinery’s development, remains committed to supporting its mission to make fuel products more available and affordable for Nigerians.

“With 480 vessels already delivered, the refinery has started producing various fuel types—petrol, diesel, kerosene, and aviation jet fuel—and is strategically positioned to meet both domestic demands and export needs,” Ogunyemi said.

He emphasized that adopting a naira-for-crude model would shield Nigeria’s economy from the volatility of forex markets and reduce pressure on the naira.

“Our Free Trade Zone Scheme is a cornerstone of Nigeria’s economic strategy, and the Dangote Refinery stands out as a shining example of what’s possible,” he said.

The One-Stop-Shop Committee was established to streamline and coordinate the process of selling crude oil to local refineries. It includes representatives from various regulatory and security bodies, providing a unified approach to executing the naira-based crude sales policy.

Committee Coordinator Maureen Ogbonna hailed the initiative as a "landmark intervention" by President Bola Tinubu’s administration to rebuild the economy from the ground up.

“It’s only a matter of time before Nigeria completely shifts from invoicing local crude sales in dollars,” she noted. “This transition will boost investor confidence, reduce pressure on foreign reserves, and help stabilize the naira.”

Ogbonna also commended NEPZA’s cooperation and its readiness to give the committee full access to the Dangote Refinery—the only functional refinery in the country at present.

“We’re grateful for Ogunyemi’s leadership and NEPZA’s strategic backing. This collaboration will empower the Dangote Refinery to take the lead in actualizing the president’s vision,” she said.

Representing the Dangote Refinery, Akinsanya Mobolarin reiterated the group's commitment to supporting the initiative, aligned with the vision of its founder, Alhaji Aliko Dangote.

“Our chairman is deeply committed to Nigeria’s progress. We recognize that energy security is vital for industrial growth and national development. We’re fully onboard,” Mobolarin stated.

He expressed strong support for the government’s efforts, highlighting the far-reaching impact of the naira-for-crude policy on economic stability and local industrial expansion.

Located in the Lekki Free Zone, the Dangote Refinery is the world’s largest single-train refinery, with a capacity of 650,000 barrels per day. Its successful integration into the naira-for-crude framework is expected not only to bring down fuel prices but also to end Nigeria’s decades-long dependence on imported petroleum products.

Punch

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