Northern Youth Coalition Urges FG: Sell Crude to Dangote in Naira, CBN Governor Foresees Petroleum Price Drop in 2024
In a fervent appeal, the Northern Youth Ambassadors, a coalition representing youth groups across the 19 northern states, has called upon the Federal Government to reconsider the method of supplying crude oil to the Dangote Petroleum Refinery. Expressing their concerns at a press briefing in Abuja on January 24, 2024, the group’s secretary, Muktar Abdurrahman Auwal, urged President Bola Tinubu not to sell crude oil to the refinery in dollars. The coalition contends that such a move would burden the masses due to the vulnerability of the naira, proposing a shift to naira transactions to mitigate potential hardships.
Auwal articulated the coalition’s stance, asserting, “Selling crude oil to DPR in foreign currency is going to be counterproductive as far as the Nigerian masses are concerned. The vulnerability of the naira due to foreign exchange has caused untold hardship to the majority of Nigerians.” He highlighted the adverse impact of the fluctuating exchange rates, linking it to high inflation rates and the consequent rise in the cost of fuel, ultimately affecting the prices of goods and services and limiting the common man’s access to the dividends of democracy.
Meanwhile, Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) sought to assuage concerns about petroleum prices during a speech at the launch of the Nigerian Economic Summit Group (NESG) 2024 Macroeconomic Outlook Report in Lagos. Governor Cardoso shared the optimistic prediction that the pump price of petroleum would decrease in the upcoming year. This encouraging outlook coincides with the anticipated commencement of operations by both government-owned and private refineries.
Governor Cardoso’s remarks come on the heels of the recent initiation of production at the Dangote Refinery, with diesel and aviation fuel already in production and petrol production slated to follow suit. The promising developments at the Dangote Refinery align with broader efforts to enhance domestic refining capacity and reduce dependency on imported petroleum products.
Simultaneously, the government-owned Port Harcourt refinery is on track to recommence production, marking a significant milestone following the completion of the first phase of rehabilitation in December 2023. These initiatives represent a concerted push toward energy self-sufficiency, domestic job creation, and a more stable petroleum market.
As the Northern Youth Ambassadors advocate for a shift in the currency of crude oil transactions, their plea adds a new dimension to the ongoing discourse surrounding the country’s oil and gas sector. The delicate balance between economic considerations, foreign exchange dynamics, and the need for affordable energy remains a central theme in Nigeria’s pursuit of a resilient and self-sustaining petroleum industry.
The intersection of these narratives sets the stage for a complex yet vital year in the country’s economic landscape, where decisions made regarding crude oil transactions and refinery operations hold the potential to shape the future trajectory of Nigeria’s energy sector and impact the lives of its citizens.
