The recent directive by President Bola Ahmed Tinubu to the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other local refineries in Naira is expected to hugely reduce petrol prices in Nigeria.
This policy shift, as highlighted by various stakeholders, aims to streamline operations and cut down on logistics costs and import charges associated with crude oil.
Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, emphasized the potential benefits of this move.
He stated, "Well, I should expect the sale of crude in naira to local refineries to impact massively on the price of the refined product. This is because all the components of logistics and importation charges would have been removed. We should be able to see the benefits impact on the price of refined products."
The directive has already set in motion a series of strategic meetings aimed at its implementation. On Monday, Minister of Finance Wale Edun met with key stakeholders, including Zacch Adedeji, Chairman of the Federal Inland Revenue Service, to discuss the operationalization of this policy.
Adedeji projected that this decision could save Nigeria an estimated $7.3 billion annually, a massive financial reprieve for the country.
This development comes amid ongoing challenges related to crude oil supply to local refineries, including the Dangote Refinery.
Despite these hurdles, the anticipated reduction in petrol prices marks a major shift in Nigeria's oil sector strategy, potentially stabilizing the market and providing economic relief to consumers.
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