Billionaire businessman Aliko Dangote has announced that Nigeria’s new “naira for crude” policy is poised to reduce the country’s demand for foreign exchange by 40%.
His remarks came on Tuesday as he celebrated the start of petrol production at his state-of-the-art Dangote Refinery in Lagos.
Speaking during a televised interview, Dangote expressed his appreciation for the Nigerian government under President Bola Tinubu, praising their role in fostering an environment conducive to economic growth and energy advancement. He specifically commended President Tinubu for spearheading the “naira for crude” initiative, which he believes will bring significant stability to the naira and mitigate the country’s dependence on dollars.
“This policy will not only stabilize the naira but also cut 40% of the demand for foreign exchange,” Dangote stated. “Moreover, it will address issues like round-tripping, which have long plagued the sector.”
Dangote further highlighted that the new refinery will enhance transparency in the oil sector by enabling precise tracking of loaded trucks and ships. This capability will provide a more accurate picture of national consumption and help in monitoring the distribution of petroleum products.
In April, the Nigerian Government announced that indigenous refineries, including Dangote’s, could now purchase crude oil in either naira or dollars. This policy shift aligns with the government’s broader strategy to boost local industry and reduce the impact of currency fluctuations.
With a processing capacity of 650,000 barrels per day, the Dangote Refinery is expected to transform over half of that into petrol, significantly impacting Nigeria’s energy landscape. This development is anticipated to offer valuable insights into the country’s true consumption patterns and further drive economic progress.
