Nigerian Government’s Decision To Sell Crude To Dangote, Others Will Drive Down Fuel Prices, Transportation Costs, Says Group

The Tinubu Stakeholders Forum (TSF) has expressed support for the Federal Executive Council’s (FEC) recent directive authorising the direct sale of crude to Dangote Refinery and other domestic refineries in naira.

The TSF expressed its support for the new directive in a statement signed by Chairman Ahmad Sajoh and Secretary Afolabi Josiah, stating that the move will address Nigerians’ concerns about the supply and cost of petroleum products.

The statement reads, “It is for us a strategic initiative and a significant milestone aimed at boosting the nation’s economy.

“By denominating crude oil sales to local refineries in Naira, the policy will undoubtedly relieve pressure on Nigeria’s foreign exchange reserves. This new deal is expected to save $7.32 billion per year, relieving the strain on foreign currency liquidity and providing a significant economic reprieve.

“The directive is consistent with TSF’s vision of promoting economic stability and growth. It will help to keep petroleum product prices stable through fixed exchange rate sales. This move is also expected to reduce inflationary pressures on food and transportation prices.

“As a result, Nigerians may see a drop in current fuel prices, lowering transportation costs and the cost of goods, thereby improving household budgets across the country.

“It is also expected to have a positive economic impact by stabilising the dollar/naira exchange rate, as well as improving economic predictability and market stability.

“The commitment of NNPCL to supply four crude oil cargoes per month to the Dangote Refinery, as well as the facilitation of additional supplies from international traders, demonstrate a strong framework designed to sustain and expand local refining capabilities.

“This is a significant pro-business gesture for local refineries to increase production capacity while ensuring a more resilient and self-sufficient petroleum sector.”

“So, having considered all of this, we have every reason to appreciate the Federal Government’s foresight in not only resolving disputes between NNPC Ltd and local refineries, but also encouraging increased production capacity.”

TSF also stated that it remains committed to promoting policies that drive Nigeria’s economic development and improve the well-being of its citizens.