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The Nigeria Export Processing Zones Authority, alongside the Federal Government’s One-Stop-Shop Committee on Crude Sales in Naira and Dangote Refinery and Petrochemicals Free Zone Enterprise, has reached an agreement to expedite the execution of a presidential directive that aims to secure full energy independence through the sale of crude oil to local refineries in naira.
This strategic partnership was established during a high-level courtesy visit to NEPZA's Managing Director, Olufemi Ogunyemi, and intends to remove regulatory obstacles to facilitate a smooth domestic crude oil transaction process that emphasizes the use of local currency rather than the dollar.
This initiative emerges amid rising international crude oil prices driven by recent conflicts between Israel and Iran.
The geopolitical tensions have caused global oil prices to surge, resulting in record-high pump prices for petrol in Nigeria, with costs reaching N955 per litre in Abuja and N915 in Lagos.
This tripartite agreement is timely, as many Nigerians are facing rising fuel prices and currency depreciation. Ogunyemi remarked during the meeting at NEPZA’s Abuja headquarters that this development represents a significant transformation in Nigeria’s energy and economic policies.
He stated that the collaboration among NEPZA, the One-Stop-Shop Committee on “Sale of Crude in Naira,” and Dangote Refinery & Petrochemicals Free Zone Enterprises aims to diligently implement the presidential directive to reduce domestic petroleum prices, enhance national energy security, and foster economic growth.
He noted that the mission for energy security is already half fulfilled with the successful establishment of the Dangote Refinery & Petrochemicals FZE, which he emphasized is a national asset benefiting from federal incentives.
The goal is for this facility, which symbolizes national pride, to lead the way toward affordable and accessible energy.
Ogunyemi highlighted NEPZA’s crucial supervisory role throughout the refinery's development and its commitment to supporting future endeavors to make petroleum products cheaper and more available for Nigerians.
With 480 vessels already operating, the refinery is progressively producing various fuel types, including petrol, diesel, kerosene, and aviation fuel, positioned to satisfy both domestic demands and export needs.
According to Ogunyemi, the enforcement of the naira-for-crude initiative will safeguard Nigeria’s economy from foreign exchange market fluctuations and lessen the pressure on the naira.
He emphasized that the Free Trade Zone Scheme is vital for the nation’s economic advancement and expressed excitement about having the Dangote Refinery as a leading force in this economic transformation.
The Federal Government’s One-Stop-Shop Committee was established to coordinate and simplify the procedures surrounding local crude oil sales to domestic refineries, comprising representatives from various regulatory and security agencies to ensure a cohesive approach to realizing the naira-based crude sale directive.
Maureen Ogbonna, the committee’s coordinator, described the initiative as a “landmark intervention” by President Bola Tinubu’s administration aimed at revitalizing the economy.
She predicted that Nigeria would move away from invoicing domestic crude sales in dollars in due course, which will enhance investor confidence, relieve pressure on foreign reserves, and enable the naira to regain strength.
Ogbonna commended NEPZA for its openness and readiness to provide the committee with full access to the Dangote Refinery, currently Nigeria's only operational refinery.
She expressed gratitude for Ogunyemi’s commitment and the strategic support NEPZA is extending, asserting that this partnership will empower the Dangote Refinery to spearhead this presidential initiative.
Akinsanya Mobolarin, who represented Dangote Refinery at the meeting, echoed the group's commitment to supporting the initiative in alignment with the vision of its founder, Alhaji Aliko Dangote.
He emphasized that the chairman is deeply invested in Nigeria’s progress and acknowledged the importance of energy security in achieving industrialization and economic growth, affirming their readiness to contribute.
Mobolarin stressed that the refinery welcomes the government’s initiatives and understands the crucial impact that the naira-for-crude model could have on economic stability and the growth of local industries.
The Dangote Refinery, located in the Lekki Free Zone, holds the title of the largest single-train refinery globally with a capacity of 650,000 barrels per day.
Its successful integration into the government’s naira-for-crude framework is anticipated to reduce fuel prices and liberate Nigeria from decades of dependency on imported petroleum products.
