Chijioke Ekechukwu, an Economic Expert, has said that most of the economic projections and outlook for 2024 and 2025 were hinged on the production from Dangote Refinery.

Mr Ekechukwu underscored the need to support and encourage the refinery and ensure its optimal production for forex availability and growth of the nation’s foreign reserve and economy.

Mr Ekechukwu, the managing director of Dignity Finance and Investment Ltd., made this known on Sunday in an interview in Abuja. While reacting to the recent directive by the Federal Government to sell crude to the Dangote refinery and local refineries in naira, the expert lauded the development.

The federal government directed the Nigerian National Petroleum Company Limited (NNPC Ltd.) to commence crude oil sales at the Dangote refinery and other local refineries in the naira denomination.

President Bola Tinubu approved the new directive to promote crude oil trade using the local currency.

According to the expert, the advantage of selling to the refinery in naira is to avoid putting pressure on the refinery to source foreign currency to purchase crude oil.

He said there would be pressure on the nation’s foreign exchange market if the refinery sources for forex locally to pay for crude. He said that paying in naira would benefit the refinery and the economy.

“Firstly, I was surprised that the President is approving the sale of crude oil to Dangote Refinery now. I expected that all these would have been agreed upon and approved even before the construction of the refinery started.

“Most of the economic projections and outlook for 2024 and 2025 were hinged on the production from Dangote Refinery. Everything needs to be done to support and encourage the refinery and ensure that it produces optimally, in the interest of our economic growth, forex availability, growth of foreign reserve and employment in Nigeria,” he said.

He explained that it was only logical that the international oil price would be the guiding price while any prevailing exchange rate would be used whenever such a sale was to take place. 

(NAN)