Billionaire businessman Aliko Dangote announced on Tuesday that the introduction of a “naira for crude” policy could lead to a 40% reduction in the demand for foreign exchange in Nigeria. Speaking during an interview with Arise TV, Dangote shared this optimistic outlook while revealing that the Dangote Refinery in Lagos has commenced petrol production.
“I would like to salute the people of Nigeria and the government of President Bola Tinubu for creating an environment that enables us to thrive and achieve this monumental goal of providing energy to our people for growth and prosperity,” Dangote said.
The policy shift, according to Dangote, is set to bolster the local currency and reduce reliance on the dollar. “I want to thank President Bola Tinubu for creating this idea of ‘naira for crude’ and ‘naira for product.’ This approach will bring substantial stability to the naira and eliminate 40% of the demand for dollars. Additionally, it will curb the practice of round-tripping,” he explained.
He also noted the benefits of enhanced tracking capabilities with the refinery’s operations, suggesting that it would lead to more accurate data on national fuel consumption. “Now that we have this refinery working, it will show the true consumption of Nigeria. We can track each loaded truck and try as much as possible to monitor loaded ships. For some of the products we have, we can even provide detailed consumption data,” Dangote added.
In April, the Federal Government announced that indigenous refineries could now purchase crude oil in naira or dollars, a move designed to encourage local refining and reduce dependency on foreign currency. The government also reported that Nigeria’s total crude oil and condensate reserves had increased to 37.5 billion barrels as of January 1, 2024, with a life index of 68.01 years.
When operating at full capacity, the Dangote Refinery is capable of processing 650,000 barrels of oil per day, with over half of the output converted into petrol, marking a significant step towards energy independence for the country.
