Anxiety is spreading among Nigerians as Dangote Refinery prepares to halt petroleum sales in Naira by March 31, sparking fears of another wave of price hikes and economic hardship.
Residents of Ibadan, speaking with the News Agency of Nigeria (NAN), expressed deep concern over the potential ripple effects of this decision.
Oluyemi Ojeyemi, a graphic designer, noted that when Dangote was purchasing crude in Naira, fuel prices had begun to decline. However, switching to dollar transactions could reverse these gains.
“If they start buying crude in dollars, we all know what will happen. Fuel prices will go up again, and the masses will suffer the most,” he lamented.
The refinery, which has a processing capacity of 650,000 barrels per day, announced its decision due to an imbalance between its dollar-denominated crude purchases and Naira-based sales.
A civil servant, Enobong Adefusi, accused businesses of always exploiting fuel price hikes to inflate costs. She urged the government to intervene, especially in reducing transportation costs.
“Everything in this country depends on transport. If fuel prices go up, everything follows. The government must negotiate with Dangote to maintain Naira sales,” she said.
Financial expert Tunji Adepeju believes Dangote should have renegotiated his crude supply deal before announcing the shift to dollar transactions.
“He’s playing smart. While buying crude in Naira, he’s also selling refined products to foreign countries in dollars. This should have been sorted before launching the refinery,” he argued.
As the refinery’s six-month crude swap agreement with the Nigerian National Petroleum Company Limited (NNPCL) nears expiration, uncertainty looms over what lies ahead for fuel prices and Nigeria’s struggling economy.
