SHAREHOLDERS have commended President Bola Tinubu and the Federal Executive Council (FEC) for the continuation and institution of the Naira-for-crude policy as a national policy.
Shareholders under the aegis of Association for the Advancement of Rights of Nigerian Shareholders (AARNS) said the continuation of the naira-for-crude policy was a further indication that the Tinubu-led reforms were grounded in national priorities and development.
The Federal Government last week authorised the continuation of the Naira-for-crude policy after the expiration of the initial six-month trial phase.
Under the naira-for-crude, naira-for-products transaction arrangement, the Nigerian National Petroleum Company (NNPCL) Limited will sell crude oil to local refineries in naira, using Dangote Petroleum Refinery as the pilot. Also, such local refineries will sell their products to the domestic market using the national currency. The transaction arrangement officially took off on October 1, 2024.
Reacting to the development, President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, said steps taken so far by the government have shown that the economic reforms were well thought out, sustainable and inclusive.
He said the continuation of naira-for-crude would not only ensure stability in the retail Premium Motor Spirit or petrol market, but also provide Nigerian with opportunity to develop its local refining market.
He called on the Dangote Group, the main and immediate beneficiary of the policy, to reciprocate the governments gesture by listing its Dangote Petroleum Refinery on the stock exchange.
According to him, such listing, like other members of Dangote Group, will open up the benefits from the petroleum refinery value-chain to the generality of Nigerians, creating a sense of inclusiveness and common purpose.
He explained that the Dangote Refinery may explore various options of listing, including listing by introduction, offer for sale, and initial public offering (IPO) among others, citing the listing of major oil and gas companies such as Seplat Energy and Aradel Plc.
Alhaji Aliko Dangote should reciprocate this supportive governments policy. Dangote is no doubt a friend of the investors. We shareholders appreciate him. We call on him to list the Dangote Refinery on the stock exchange too. This is the time to do it, and we are sure like Dangote Cement, Dangote Sugar Refinery and NASCON, Dangote Petroleum Refinery will also be a huge success at the stock market.
The stock market has a pass-through effect that directly and indirectly transfers economic wealth creation to the general populace. That explains why companies that play important economic roles and are beneficiaries of national policies should consider listing as a priority, Dr. Umar said.
He commended the immediate reduction in petrol price by Dangote Refinery in response to the continuation of the naira-for-crude policy, noting that there are all indications that the petrol price may drop further as the implementation of the policy progresses.
Umar said Alhaji Aliko Dangote has shown unquestionable commitment as a patriotic entrepreneur, citing his plan to make Nigeria self-sufficient in food production as well as the development of the steel sector.
He said Dangotes efforts greatly contributed to making Nigeria self-sufficient in the cement sector.
Explaining further, Dr. Umar said the naira-for-crude, naira-for-products system would support the countrys quests for stable and positive foreign exchange (forex) position, currency and energy security.
He added that the policy has potential to contribute to the development of several sectors of the economy, including healthcare, agriculture and manufacturing sectors.
We commend President Bola Tinubu for this thoughtful decision to continue Naira-for-crude policy. It shows the President has the uppermost interest of Nigerians at heart. As the gains of the governments economic reforms are becoming increasingly evident, what we need now is stability and guided interventions where necessary. We can see the gains in inflation reduction, forex inflows and stability and economic productivity, we just need to continue on that trajectory, Dr. Umar said.
He said the latest upgrade of Nigeria’s sovereign rating by Fitch Ratings underscored positive global perception of the governments reforms.
He assured that shareholders, who have seen significant gains in their investments through the reforms, would continue to support the government and all stakeholders in the quest for national growth and development.
READ ALSO: Tinubu’s Naira for crude will remove 40% of dollar demands — Dangote
and then