What Nigeria stands to gain from FG, Dangote’s deal — NECA
By Victor AhiumaYoung
The Nigeria Employers Consultative Association, NECA, has lauded what it considered a landmark agreement between the federal government and the Dangote refineries on the sale of petrol to the Nigerian National Petroleum Corporation Limited, NNPCL.
According to the employers’ body, the pact can signal the end of petrol scarcity and also lead to reduced pressure on foreign exchange demand.
Speaking in Lagos, the Director-General of NECA, Mr Adewale-Smatt Oyerinde, commended the pricing agreement that led to the lifting of petrol from the Dangote refinery, noting that “this singular event has the potential to change the perennial fuel scarcity situation in the country and also reduce the pressure on the Naira.
”While the current pump price is way above the expected price due to dollar-denominated crude oil purchase, it is expected that the beginning of the crude-for-Naira scheme agreed on from October 1 will cause a reduction in general price of the pump price.
“This new direction will not only benefit the government, it will also have a massive impact on the business community and the Nigerian populace in general.
”It will moderate the cost of fuel, reduce the long queues at filling stations across the country and support the energy needs of small businesses.
”We also commend the federal government’s intention to set up a one-stop shop that would harmonize the interests of all stakeholders, including regulatory and security agencies, to ensure a seamless implementation of the initiative.
”Such one-stop-shop would not only enhance the swiftness of approvals for the lifting of refined products but also be cost-effective.”
The NECA DG identified “a similar challenge in the local gas market, where the price of gas sold to domestic industries is benchmarked in US dollars.
”Industries, particularly the manufacturing sector, have suffered significant production setbacks due to limited foreign exchange and instability in the naira, which has made it difficult to purchase adequate gas for production.
”We, therefore, urge the federal government to take similar steps to benchmark the price of gas in naira to support local industries, especially the manufacturing sector.”
The post What Nigeria stands to gain from FG, Dangote’s deal — NECA appeared first on Vanguard News.
