Ogbodo Ozioma Favour
Financial experts have lauded the decision for refined petroleum products from the $20bn Dangote Petroleum Refinery to be sold in naira, not in the United States dollar.
In an exclusive interview with the African Health Report (AHR), financial analyst Mr Olatunde Oluwatuyi stated that this move would reduce pressure on the foreign exchange market and increase stability for the Naira.
Oluwatuyi emphasized that the shift to selling in Naira is likely to boost local industrialization and employment rates for Nigerian citizens, as it will reduce the need for dollar-based settlements and decrease the pressure on the country’s currency.
He highlighted the potential for inflation moderation and Naira stability in the short term, with hopes for long-term benefits such as employment growth and industrialization.
He said: “The decision to remove the subsidy and implement policies such as selling products in Naira was deemed necessary and long overdue by economists. While some citizens may have been caught off guard by the side effects of these policies, economists believe that the cost savings from these measures will ultimately be channelled into critical sectors, such as education, agriculture, and industrialization.”
Oluwatuyi urged companies to be more vigilant in their foreign currency operations and reduce their reliance on foreign raw materials. Instead, he recommended focusing on sourcing raw materials within the Nigerian system to avoid adverse effects from foreign exchange fluctuations.
Overall, the decision to sell refined petroleum products in Naira is seen as a positive step towards reducing the country’s inflation rate and alleviating pressure on the country’s currency. It is expected to have a positive impact on the economy, leading to increased stability and growth in various sectors, ultimately benefiting Nigerian citizens.