Don’t backtrack on naira-for-crude, LCCI urges NNPCL

The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to sustain the implementation of naira payments for crude oil sales to the Dangote Refinery and other local refineries.

The government had stated that the sales of crude oil in naira to Dangote Refinery and other local refiners started from October 1st, 2024.

The LCCI president, Gabriel Idahosa, stated this during the press conference aimed at addressing the bottlenecks affecting the organised private sector, adding that full deregulation in the oil and gas sector may help reduce prices.

“The end to the federal government’s petrol pricing interventions is long overdue.  Allowing a direct purchase mechanism that allows marketers of premium motor spirit (PMS) to negotiate commercial terms directly with refineries is quite commendable.

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“With more competition and a smoother supply chain in the market, we may see lower prices soon if the oil and gas sector is fully deregulated and well-driven by the regulators in the sector,” he said.

He added that the full implementation of the Petroleum Industry Act (PIA) would foster reforms that would transform the country’s economy.

“We urge the government to summon the courage to be consistent with the oil and gas sector reforms and implement the Petroleum Industry Act (PIA) fully. We see the long-term gains of these reforms if they are implemented under a conducive regulatory environment,” he added.

He stressed that the federal government’s monetary stance has heightened the cost of living, saying fiscal stimulus and non-cash interventions would help cushion the burden.

“In the situation we find ourselves in, we urge the government to stay focused and more vigorous regarding the ongoing interventions like removing some taxes, the transition to Compressed Natural Gas (CNG) mobility, the Crude for Naira scheme, and the suspension of some import duties.

“The CNG mobility initiative must be supported with CNG refuelling stations nationwide and credit facilities to support quick conversion and usage,” he said.