Low expectations as Nigeria begins Naira-for-crude deal

The announcement on the planned commencement of the Federal Government’s naira-for-crude deal with Dangote Refinery has been greeted by low expectations among Nigerians.

Many Nigerians have taken to social media to express doubt that the commencement of the deal would translate to cheaper fuel prices or alleviate the hardship in the country.

The federal government had earlier this month that the Naira-for-crude with Africa’s biggest refinery would begin on October 1.

In a fresh statement issued on Sunday, Dare Adekanmbi, spokesman for the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, said the Naira-for-deal agreement would begin on Tuesday as earlier by the government.

Adedeji is also the Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency.

Adekanmbi said: “I can confirm to you that the Chairman, Sub-Technical Committee, Zacch Adedeji, is working day and night to ensure that things go according to plans. He knows how important it is to have the agreement implemented as has been planned for the benefit of Nigerians.”

However, muted reactions have greeted the announcement.

One Okai Jeremiah said on Facebook on Monday that the commencement of operation by Dangote Refinery has been associated with the hike in petrol prices.

READ ALSO: Tinubu won’t intervene in NNPC, Dangote Refinery fuel price war – Presidency

He wrote: “As if Nigerians will benefit from it….since the so-called Dangote Refinery started production, the problem of fuel in this country increased.”

A user on X posited that Nigerians would buy the product at N2,500 from the current price of about N1,000.

“Meaning we start buying fuel around 2500k per litre abi?” he stated.

Another user, Babatunde Oluwamuyiwa wrote: “How much are you selling per barrel to him? It’s not about dollars or naira alone. If you sell crude to him cheaper, the refined product too will be cheaper.”

Meanwhile, the Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, Eche Idoko, said the same day the Naira for crude deal should be extended to other modular refineries in the country and not only Dangote Refinery.

“The committee is only discussing with Dangote at the moment.”

“The association made a case that the committee should extend the sale to other refineries to avoid discrimination. But they haven’t given us any feedback,” Idoko concluded.

By: Babajide Okeowo

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