The President of the Dangote Group, Aliko Dangote, says President Bola Tinubu’s Naira-for-crude policy will slash the demand for foreign exchange (forex) by 40 per cent.
Dangote said this on Tuesday at a press conference where he announced the commencement of the production of petrol at the Lagos-based 650,000 barrels per day facility.
Recall that in April, the Federal Government said indigenous refineries could buy crude oil in Naira or dollars.
Similarly, the government revealed the total crude oil and condensate reserves in Nigeria increased to 37.5 billion barrels as of January 1, with a life index of 68.01 years.
“I will like to salute the people of Nigeria and the government of President Bola Tinubu for creating the environment for us to thrive and also achieve this.
“I want to thank President Bola Tinubu for creating this idea of Naira-for-crude and Naira for the product.
“Doing that will give a lot of stability to the Naira and remove 40 percent of the demand for dollars. That’s not just it. There is (been) a lot of round-tripping,” he said.
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Président TINUBU has done extremely well for authorising crude oil sales in Naira to Dangote Refinery. This should be extended to other refineries and businesses. This is a move to de dollarisation of the Nigeria oil business. And the forex market will definitely see an amelioration in favour of Nigerians. I would also like to appeal to President TINUBU to stretch this system by swapping Naira with other currencies with countries that trade with us. We must negotiate with our trade partners for a currency swap and this is the only way the country can get back its lost glory in terms stabilising its exchange rates. It is absurd that Nigeria economy is entirely dependent on dollar and this must be reversed immediately . Dollar dominance has no place in Nigeria economy, we must valorise our legal tender currency - the naira. We can only use dollar when we are buying from the the U.S. and not when our business men and women are buying from China, Brasil, Russia etc etc
ReplyDeleteMonies you are owing other countries are not in naira, so if Dangote pays naira, you give China, France or US naira as debt payment. Your praising the president is just sycophantic, it has no economic logic at all.
DeleteHis/ her praising the president is on point. Dangote's refinery was not built to just serve Nigerians alone, it can serve other nations, US for instance, who would pay in dollars. thereby giving the govt more forex.. so the initial person is correct
DeleteI disagree with you. Forex to Dangote is not Forex to federal government nor to federation account. Dangote is a business man and businesses are for profit making, All the cement he has been selling to other countries, why has the forex from those sales not reducing need for more dollars as the case may be.
ReplyDelete