CRUDE SALES IN NAIRA
POLITICS DIGEST – The Directive by the Federal Council to NNPC to sell crude oil to Dangote Refinery in Naira is a major masterstroke that many might not immediately see or understand its benefits.
An immediate loosening of 30% pressure on forex is an immediate gain to the Nigerian Economy.
Now the impact will be felt on cost of importation of machines and other items for production which will in turn reduce the prices.
In simple logic, It is now like an average yam farmer selling his yams to a pounded yam maker who processes to sales.
As against the former, which was to go through a mediator in another country using another currency before you could he could buy, process and sell to us, users.
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If the policy is jealously guarded and implemented and backed with current CNG installations and deployment across the country, energy cost will likely go down by about 40 -50%
Do not forget that Ajeokuta- Kaduna- Kano (AKK) gas project is 95% completed.
Imagine what that will mean to the poor masses of the country. All these are geared towards reducing energy cost locally.
A crash in locally consumed energy cost will also reduce food prices as transportation cost will go down.
Already, we are told that Dangote Refinery is working to reduce Gas per liter prices.
In all, I see a very positive outlook in the nearest future, we only need a little patience, positivity and patriotism.
Also Government sequencing of its programs and policies needs a quick rearrangement, so that, it become sweet-bitter- sweet-bitter, not bitter-bitter-sweet-bitter-sweet-sweet.
(c) This is Sai Baba
