The federal government has been advised to collaborate with local refineries, including the Dangote Refinery, to combat the country’s rising inflation.
News About Nigeria reports that Nigeria’s rising inflation reached 34.19% in June 2024.
According to the Crude Oil Refiners Association of Nigeria, ending the importation of petroleum products is crucial to addressing inflation.
The association’s publicity secretary, Eche Idoko, stated that local refineries have a plan to stop importation within 18 months if the government collaborates with them.
Idoko stressed that tackling inflation requires addressing the pump price of petroleum products and involving key sectors like refineries in the plan.
He stated that refineries in various stages of completion can produce enough to meet Nigeria’s consumption within 18 months.
This advice comes amid a dispute between Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The authority’s CEO, Farouk Ahmed, had expressed concerns about allowing Dangote Refinery to dominate the petroleum products market, preferring imported products.
However, Aliko Dangote, chairman of the Dangote Group, dismissed these claims, sparking a debate in the oil and gas sector.
To resolve the issue, the Minister of Petroleum Resources, Heineken Lokpobiri, met with key stakeholders, including Dangote, Ahmed, and the CEOs of relevant companies.
The House of Representatives also called for Ahmed’s suspension over his comments on Dangote Refinery.
Recall that on June 22, Dangote said he was willing to sell the oil refinery to the Nigerian National Petroleum Company (NNPC) Limited.
The collaboration between the government and local refineries is seen as a potential solution to Nigeria’s inflation and petroleum product importation challenges.
