Experts Support Dangote Refinery's Dollar Pricing Policy

Experts have defended the dollar pricing policy of Dangote Refinery, stating it is crucial for enhancing Nigeria's economic fundamentals, particularly the exchange rate stability and domestic crude supply. Wilson Agaba, an economic analyst, explained that the market requires a dollar-based payment system for fuel purchases at the refinery, which increases demand for foreign exchange and puts pressure on the naira, potentially leading to higher pump prices.

The refinery, built at a cost of $20 billion, is essential for covering operational costs and providing returns to investors. Prof. Wumi Iledare noted that the real issue lies in the country's ability to achieve energy security, which is influenced by global crude oil prices and the dollar exchange rate.

Experts urged the government to stabilize the naira, increase domestic crude supply, and improve infrastructure to reduce transport costs, thereby encouraging private investment in the sector.