Association advises Dangote, refiners to sell in Naira
The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has urged Dangote Refinery and other modular refineries in the country to sell refined products to oil marketers in naira.
The association emphasised that “this is imperative as the refiners will also be acquiring the crude in naira.”
NOGASA National President Benneth Korie made this appeal during a briefing with journalists in Abuja on Wednesday. He supported President Bola Tinubu’s recent directive for the Nigerian National Petroleum Company Ltd. (NNPCL) to sell crude oil to refineries in naira.
”We hope that our refineries will reciprocate by selling refined products in naira, thus stabilising the market,” Korie said.
He also advocated for broader distribution of Dangote’s refined products to various stakeholders, including NNPC Trading, NNPC Retail, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).
This inclusivity, he noted, would support widespread and sustainable distribution across the country.
Korie called on the Federal Government to expedite the operational start of the Port Harcourt Refinery, scheduled for September, to alleviate current shortages and ensure equitable distribution among stakeholders. He also urged a reduction in the price of Automotive Gas Oil (diesel) to lower transportation costs and overall petroleum product prices.
“With Dangote’s refinery production and crude oil transactions in naira, we expect a reduction in diesel prices,” he said, suggesting that NNPC Ltd. should use its stake in Dangote’s refinery to drive down costs.
Addressing concerns about smuggling, Korie recommended redesigning distribution channels to curb illegal exportation of petroleum products.
He also highlighted that “road constitutes 45 percent of the delay in the delivery of petroleum products” and called for improvements in transportation infrastructure, including expanding and revamping railways for bulk cargo.
Additionally, Korie urged federal, state, and local governments to address the issue of multiple taxation on highways and to prioritise agriculture by making farming more attractive and profitable. He recommended subsidising agricultural inputs and equipment and deploying extension workers to educate farmers on modern techniques such as irrigation and fumigation.
