By Ephraim Emmanuel
Strong reactions have trailed the decision of the Dangote Petroleum Refinery to sell its petroleum products to domestic marketers in United States dollars, with stakeholders warning of catastrophic consequences for Nigeria’s fragile economy.
An energy expert and the National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Joseph Obele, warned that the country’s inflation crisis could worsen significantly if the refinery proceeds with the dollar-pricing policy.
In an interview with ExceedFM, Dr. Obele, who is also a lecturer at the Ignatius Ajuru University of Education, cautioned that the move would trigger an immediate spike in the local cost of doing business and further devalue the national currency.
“Why should petroleum products refined and consumed within Nigeria be paid for in foreign currency?” Obele questioned.
“If left unchecked, this dollarization policy will set a dangerous precedent. Other manufacturers and foreign institutions operating locally will follow suit, demanding payment in dollars. This will inevitably crash the value of the Naira further and deepen poverty.”
While acknowledging that private entities must consider commercial viability, Obele urged the refinery’s management to consider the broader macroeconomic impact of its pricing decisions.
“It is true that businesses have commercial factors to consider when making decisions, but they must weigh the consequences and implications on the national economy,” Obele said.
“The energy sector remains the backbone of Nigeria’s economy. Major decisions affecting petroleum pricing and transactions have direct consequences for government revenue, businesses, investors, and the welfare of millions of Nigerians.”
He further described the development as a severe cautionary signal for the nation’s financial stability.
Consequently, the PETROAN spokesperson called on the Federal Government to intervene immediately and enforce measures to protect and sustain the “crude-for-Naira” initiative previously brokered with domestic refiners.
While conceding that private investors deserve fair returns on their capital, Dr. Obele insisted that commercial decisions in Nigeria’s oil and gas sector must prioritize national economic stability over corporate profit.
