In a significant move to alleviate the burden of high fuel costs on its citizens and bolster national energy security, the Nigerian government has forged a powerful alliance between the Nigeria Export Processing Zones Authority (NEPZA), the Federal Government’s One-Stop-Shop Committee on the Sale of Crude in Naira, and the Dangote Refinery and Petrochemicals Free Zone Enterprise. The primary goal of this tripartite partnership is to synergize their efforts to achieve a presidential directive aimed at crashing domestic prices of petroleum products.
The Presidential Mandate: Affordable Fuel for Nigerians
President Bola Tinubu’s administration has made reducing the domestic prices of petroleum products a key priority. For too long, Nigerians have grappled with the economic impact of fluctuating and often exorbitant fuel costs, largely due to the nation’s reliance on imported refined petroleum despite being a major crude oil producer. This new collaboration is a direct response to this challenge, signaling a decisive shift towards domestic sufficiency and economic stability.
Key Players and Their Roles
The partnership brings together critical entities, each with a distinct role:
- Nigeria Export Processing Zones Authority (NEPZA): As the body overseeing Free Trade Zones, NEPZA has been a supervising authority for the Dangote Refinery project from its inception. Its involvement is crucial for ensuring the refinery, which operates as a Free Zone enterprise, continues to leverage incentives and contribute effectively to the national energy transformation drive. Dr. Olufemi Ogunyemi, NEPZA’s Managing Director, emphasized the refinery’s status as a landmark achievement within its scheme, highlighting its capacity to process various crude types and ramp up domestic supply.
- Federal Government’s One-Stop-Shop Committee on the Sale of Crude in Naira: Inaugurated by the Federal Government, this committee is tasked with creating a streamlined and coordinated framework to facilitate the sale of crude oil to local refineries, especially the Dangote Refinery, in Naira instead of foreign currency. This initiative is pivotal for insulating the local currency from exchange rate volatility, reducing reliance on the U.S. dollar for domestic transactions, and easing cost pressures. Maureen Ogbonna, the Committee’s Coordinator, described this as a “landmark intervention” in the economic reform agenda.
- Dangote Refinery and Petrochemicals Free Zone Enterprise: As Africa’s largest single-train refinery with a capacity of 650,000 barrels per day, Dangote Refinery is central to Nigeria’s quest for energy independence. The refinery has already commenced operations, with production of petrol, diesel, kerosene, and aviation fuel steadily increasing. The refinery’s commitment, reaffirmed by Engr. Akinsanya Mobolaji Mobolarin, General Manager of Engineering and Strategic Services, is vital for ensuring a consistent supply of refined products that can significantly drive down prices. The refinery has already demonstrated its capability by previously reducing petrol prices multiple times in 2025.
Combating Past Deficiencies for Future Prosperity
The previous system for petroleum product supply was plagued by inefficiencies, including under-reporting, theft, revenue loss, and mismatches in export data. This new framework, bolstered by the “naira-for-crude” policy, aims to usher in an era of greater transparency and accountability. By enabling crude sales in Naira, the initiative is expected to stabilize fuel prices, reduce inflation, and free Nigeria from decades of dependence on imported refined products.
The collaboration signifies a holistic approach to tackling a deeply entrenched economic challenge. By streamlining processes, promoting local currency transactions, and leveraging the immense capacity of the Dangote Refinery, Nigeria is poised to achieve not only energy security but also significant economic stability and growth, ultimately benefiting its entire populace. The success of this partnership could set a precedent for strategic public-private collaborations aimed at national development.
