Northern Youth Group Advocates For Naira Payment At Dangote Refinery

The Arewa Youth Ambassadors (AYA), representing youth organizations across the 19 Northern states, has taken a stand on the crude oil supply to Dangote Petroleum Refinery (DPR).

In a press conference held in Abuja, Muktar Abdurrahman Auwal, the group’s secretary, called upon President Bola Tinubu’s administration to consider selling crude oil to DPR in naira instead of dollars.

The refinery has already procured six million barrels of crude oil from the Nigerian National Petroleum Company Limited (NNPCL) and transported them to its two Single Point Mooring (SPM) sites situated 25 kilometers offshore.

The group highlighted the challenges faced by Nigerians due to foreign exchange shortages, emphasizing the adverse effects on the economy. Auwal stated, “Selling crude oil to DPR in foreign currency is going to be counterproductive as far as the Nigerian masses are concerned.

“The volatility of the naira linked to foreign exchange has exacerbated hardships for the majority of Nigerians, with persistent inflation primarily fueled by elevated fuel costs. As a result, the current pricing dynamics have hindered ordinary citizens from experiencing the benefits of democracy in Nigeria.

Contrary to earlier indications from the refinery’s management, petroleum products will now be traded with marketers in naira, not dollars. Previously, in a September 2023 interview with S&P Global Commodity Insights, Devakumar Edwin, the Group Executive of Dangote Refinery, had disclosed plans to purchase oil refined at the facility in US dollars, citing its location in a free trade zone on the outskirts of Lagos.

However, following recent negotiations with the company, oil marketers have announced a shift in policy, confirming that petroleum products from the Dangote refinery will be traded in naira, departing from the earlier speculation of transactions in US dollars.