Some Ibadan residents have expressed anxiety over an anticipated increase in prices of items following Dangote Refinery’s move to stop the transaction of petroleum products in naira come March 31.
The respondents shared their minds in separate interviews with the News Agency of Nigeria (NAN) in Ibadan on Tuesday.
A graphic designer, Mr Oluyemi Ojeyemi, said Nigerians should expect ripple effects on the prices of items, thus adding to the present economic hardship.
He said things were already taking shape with the recent consecutive drops in the price of petrol, being an essential commodity that Nigerians relied upon.
“When Dangote Refinery was purchasing crude in naira, there was a reduction in the price of petrol sold to Nigerians.
“If the company now starts to buy in dollars, it will affect the masses,” Ojeyemi said.
He, therefore, appealed to the government to work on making life better for Nigerians.
NAN recalls that the refinery recently announced a temporary halt in the sales of its petroleum products in Naira from March 31.
The company hinged it on an imbalance between its sales proceeds and crude oil purchase obligations denominated in dollars.
According to a report, the suspension of naira petrol sales is expected to fuel a surge in demand for US dollars in Nigeria’s foreign exchange market.
This is amid the delays in the renegotiation of the naira-for-crude deal.
Meanwhile, a civil servant, Mrs Enobong Adefusi, accused businesspersons of always hiding behind the cost of petrol to increase the prices of their goods and services.
According to her, Nigerians will bear the brunt if the situation with Dangote is unresolved.
“One of the things that the government can do is to ensure the cost of transportation is reduced.
“The reduction of transportation costs will affect all other things in the country.
“However, this cannot be if there are no negotiations with Dangote Refinery to continue to sell fuel in Naira,” Adefusi said.
A public servant, Mr Timothy Ajiboye, stated that the government should, after considering other factors affecting petrol prices, ensure the extension of Dangote’s agreement to sell fuel in Naira.
“This will be in the interest of the Nigerian masses, as the country is still battling with the growth of its external reserves.
“It will only be wise to allow Dangote Refinery to continue to get crude oil in Naira and sell refined petrol products in Naira to Nigerians.
“The company can make profits when it sells to other countries in foreign currencies,” Ajiboye said.
NAN reports it was alleged that the refinery, which can refine 650,000 barrels per day, had been unable to access crude oil from local producers.
This was due to the failure of the Nigerian National Petroleum Company Limited (NNPCL) to fulfil its part of the crude oil swap agreement.
Meanwhile, the six-month agreement designed to provide the refinery with a steady supply of crude oil in exchange for refined petroleum products will lapse on March 31.
According to a financial expert, Mr Tunji Adepeju, Dangote should have sought a renegotiation before approaching the public to threaten the sales of petroleum products in dollars from April 1.
“I want to believe that while he was buying in naira, he sold some to countries outside Nigeria in dollars.
“He is just trying to play smart with all of us,” Adepeju said.
The expert says that according to the positions of the government and NNPCL, the oil industry is regulated and highly technical.
“The NNPCL, on behalf of the Federal Government of Nigeria, had already sold crude oil to some other parties up to 2030.
“So, the accommodation they gave to Dangote was even to suit the pressure,” he said.
The expert argued that Dangote should have arranged how to secure his crude before setting up his refinery and not after, now looking for crude all over the world.
“This is not how to do serious business, especially in the oil and gas industry. So, I believe he didn’t quite prepare for the business,” he said.
He debunked the insinuation of an attempt to sabotage the refinery’s interest, recalling that an agreement to end crude sales in Naira had already been made.
Adepeju acknowledged the involvement of market forces and competitiveness in the recent decline in the price of petrol per litre.
“Petrol was sold between ₦865 and ₦875 yesterday at a filling station, while I bought diesel at ₦1,080, cheaper than NNPC’s ₦1,105 per litre.
“That’s the way the market should operate,” he said. (NAN)
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