NEPZA, Dangote refinery partner to crash fuel prices, push naira-for-crude policy

The Nigeria Export Processing Zones Authority (NEPZA), the Presidential One-Stop-Shop Committee on the Sale of Crude in Naira, and the Dangote Refinery & Petrochemicals Free Zone Enterprises have formed are partnering to drive the Federal Government’s directive on reducing domestic petroleum prices and promoting energy security through the adoption of a naira-for-crude transaction model.

The collaboration was reached during a courtesy visit by members of the committee to Olufemi Ogunyemi, Managing Director, NEPZA, on Tuesday in Abuja. The three parties agreed to work in synergy to facilitate the implementation of the policy, which is aimed at streamlining crude oil sales to local refineries, particularly the Dangote Refinery, while eliminating dollar dependence for domestic crude purchases.

According to a statement signed by Martins Odeh, Head, Corporate Communications, NEPZA, The committee was established by the Federal Government to coordinate a one-stop-shop approach that brings together all relevant regulatory, security, and service agencies to ease the sale of crude oil to indigenous refineries, thereby enhancing operational efficiency and economic sustainability.

Ogunyemi reaffirmed NEPZA’s full commitment to the president’s vision of achieving domestic energy sufficiency and noted that the Authority had played a pivotal role in the successful establishment of the Dangote Refinery, now Nigeria’s leading petroleum refining facility.

Read also: Dangote says naira-for-crude policy has cut fuel prices

“Interestingly, the Authority supervised the construction of the highly celebrated world-class Dangote Refinery from the beginning to its inauguration, making it a success story for us.

“The mission for energy security is half achieved because the Dangote Refinery & Petrochemicals FZE is a registered Free Zone and, as such, continues to benefit from the scheme’s incentives. Since the federal government has put a lot into ensuring the establishment of the refinery, I believe the time has come for the entity to lead our drive for energy security,” Ogunyemi said

He revealed that the refinery had already delivered 480 vessels and was producing various grades of crude, contributing to meeting local demand for petrol, diesel, kerosene, aviation fuel, and export. He also emphasised that the adoption of naira for domestic crude transactions would help shield the local currency from the volatility of dollar-based pricing and advance the country’s economic sovereignty.

“Let me reiterate that the Free Trade Zone Scheme remains a key economic driver of our nation, and so, we are happy that the Dangote Refinery is one of our shining stars that shall be used to drive this policy.

“This visit cannot be more strategic as it brings together key interest groups, stakeholders, and relevant sister agencies that constituted this committee to deliver a workable template that can guide this well-thought-out naira-for-crude swap transaction for the benefit of our nation,” he added

Speaking on behalf of the committee, Maureen Ogbonna highlighted the strategic importance of the initiative, describing it as a bold economic intervention by President Bola Ahmed Tinubu to reposition the country’s oil and gas sector.

Read also: Naira-for-Crude initiative enables consistent reduction in petrol prices – Dangote 

“We are happy with this exceptional courtesy extended to us by Dr. Olufemi Ogunyemi, the MD/CEO of NEPZA and his readiness to freely allow us access to the Dangote Refinery, being the only serviceable refinery in the country now. This collaboration will surely enable the Dangote Refinery & Petrochemicals FZE to lead the way,’’ Ogbonna said.

She commended NEPZA for its openness and readiness to facilitate the committee’s engagement with the Dangote Refinery, noting that the refinery’s capacity makes it the ideal starting point for implementing the new policy framework.

Also speaking, Akinsanya Mobolaji Mobolarin, General Manager of Engineering and Strategic Services at Dangote Refinery, reaffirmed the company’s readiness to support national economic goals.

Representing Aliko Dangote, the Chairman of Dangote Group, Mobolarin said the refinery stands ready to play a lead role in ensuring energy security and supporting Nigeria’s industrialisation drive.

He expressed optimism that the naira-for-crude policy, if effectively implemented, would trigger major economic benefits, including enhanced local refining capacity, reduced pressure on foreign exchange, and sustainable fuel pricing.