By Aaior K. Comfort

The Nigeria Employers Consultative Association (NECA) has praised the agreement between the federal government and Dangote refineries regarding the sale of petrol to the Nigerian National Petroleum Corporation Limited (NNPCL). This landmark deal is seen as a significant development that could potentially end petrol scarcity and alleviate pressure on foreign exchange reserves.

Mr. Adewale-Smatt Oyerinde, NECA’s Director-General, highlighted that the agreement, which involves the lifting of petrol from the Dangote refinery, could transform Nigeria’s persistent fuel shortages and reduce the strain on the Naira. He noted that the introduction of a crude-for-Naira scheme, effective from October 1, is expected to lower pump prices by moderating the cost of fuel and reducing long queues at filling stations.

Oyerinde also commended the federal government’s plan to establish a one-stop shop to streamline approvals for the lifting of refined products. This initiative is anticipated to enhance the efficiency of the process and reduce costs.

Additionally, NECA addressed the challenges faced in the local gas market, where prices are benchmarked in U.S. dollars, leading to difficulties for industries due to limited foreign exchange and currency instability. The association urged the government to consider benchmarking gas prices in Naira to support local industries, particularly the manufacturing sector.