Home / Jobs in Nigeria / Business / Nigeria Swaps Dollar For Naira To Stabilise Petrol Prices
swap

Nigeria Swaps Dollar For Naira To Stabilise Petrol Prices

Nigeria’s $20 billion Dangote Refinery, Africa’s biggest refinery that opened earlier this year, is now using the national currency, the Naira, instead of the U.S. dollar to buy crude oil from the state oil corporation.  This move follows a July directive approving the Nigerian National Petroleum Corporation (NNPC) to sell oil to refineries using the Naira to reduce foreign exchange demand and help stabilise pump prices for Nigerian motorists.

Under the Naira-for-crude policy, Dangote Refinery would reciprocate by selling refined products to the NNPC in Naira. Aliko Dangote, Nigeria’s richest man, runs the Dangote Refinery, which can process 650,000 barrels a day.

The refinery was forced to import crude from international markets after international oil companies insisted on a premium rate above the market price. Dangote represents a threat to some of Europe’s largest refineries, like Shell and TotalEnergies, which have held Nigeria’s oil industry in a stranglehold.

Using Naira will cut Nigeria’s monthly petroleum bill from $660 million to $50 million, netting $7.32 billion in savings annually. Nigerian authorities expect that the significant reduction in dollar outflows will improve foreign exchange reserves and stabilise the Naira, which devalued twice over the last year. For decades, Nigeria’s lack of refining capacity has caused chronic fuel shortages, resulting in long queues at the pump. Let us know what you think in the comments.

About addieneilson09

Viral Video

Support Ooduarere

SUPPORT OODUARERE
Scan QR code below to Donate Bitcoin to Ooduarere
Bitcoin address:
1FN2hvx5tGG7PisyzzDoypdX37TeWa9uwb
x

Check Also

nigerians unstoppable

US, UK patients now seek medical care in Nigeria -FG

ABUJA — THE Federal Government on Tuesday said that Nigeria is steadily being positioned as a growing hub for quality healthcare and now attracting patients not just from the West African subregion but also from countries as far as the United States and the United Kingdom. This Coordinating Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, disclosed this while briefing State House correspondents at the end of the Federal Executive Council, FEC, meeting presided over by President Bola ...