Shareholders have praised President Bola Tinubu and the Federal Executive Council (FEC) for continuing the Naira-for-Crude policy, which they see as a key step in ensuring the long-term stability of Nigeria’s oil and gas sector.
The Naira-for-Crude policy, which was recently extended after a six-month trial phase, mandates the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to local refineries, such as the Dangote Petroleum Refinery, in naira. In return, these refineries are required to sell their products within the domestic market using the national currency. The policy officially commenced on October 1, 2024.
The Association for the Advancement of Rights of Nigerian Shareholders (AARNS) expressed their approval of the policy’s continuation, highlighting that it was a clear sign of the government’s commitment to national development. Dr. Faruk Umar, the President of AARNS, stated that the reform was strategically well thought-out, sustainable, and inclusive.
Dr. Umar emphasized that the policy would not only stabilize the retail petrol market but also create an opportunity to bolster Nigeria’s domestic refining capacity, reducing reliance on imported fuel. He called on the Dangote Group, the primary beneficiary of the policy, to reciprocate by listing the Dangote Petroleum Refinery on the Nigerian Stock Exchange (NSE).
According to Dr. Umar, listing the Dangote Refinery would enable more Nigerians to share in the benefits of the refinery’s value chain. He mentioned that such a move would align with the company’s successful track record on the stock market, noting that other Dangote Group subsidiaries like Dangote Cement and Dangote Sugar Refinery have already been listed.
He added, "The stock market provides a direct and indirect wealth transfer to the public, and it is crucial for companies benefitting from national policies to make this a priority."
As Nigeria continues to explore innovative policies like the Naira-for-Crude initiative, Dr. Umar expressed his hope that the Dangote Group would take the necessary steps to list the Dangote Refinery, enabling broader participation in the country’s economic growth.
