Following the recommencement of the naira-for-crude initiative of the federal government for Dangote Refinery, shareholders have called on the management of the refinery to reciprocate the government’s gesture by listing on the Nigerian Exchange (NGX).
The shareholders commended President Bola Ahmed Tinubu and the Federal Executive Council (FEC) for the continuation and institution of the naira-for crude policy as a national policy.
Daily Trust reports that the federal government last week reinstated the naira-for-crude policy after the expiration of the initial six-month trial phase.
Under the policy, the Nigerian National Petroleum Company Limited (NNPCL) will sell crude oil to local refineries in naira, using Dangote Petroleum Refinery as the pilot, while the refineries are to sell their products to the domestic market in the same national currency.
However, shareholders under the aegis of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS) said the continuation of the naira-for crude policy was a further indication that the Tinubu-led reforms were grounded in national priorities and development.
AARNS President, Dr Faruk Umar, said steps taken so far by the government have shown that the economic reforms were well thought out, sustainable and inclusive.
He said the continuation of naira-for-crude would not only ensure stability in the retail premium motor spirit or petrol market, but also provide Nigerians with the opportunity to develop its local refining market.
He called on Dangote Group, the main and immediate beneficiary of the policy, to reciprocate the government’s gesture by listing its Dangote Petroleum Refinery on the stock exchange.
Our correspondent reports that the NGX Group Chairman, Alhaji Dr Umaru Kwairanga, recently hinted that Dangote Refinery would be listed on the Nigerian bourse by the end of 2025.
The AARNS also said such listing, like other members of Dangote Group, will open up the benefits from the petroleum refinery value-chain to the generality of Nigerians, creating a sense of inclusiveness and common purpose.
It explained that Dangote Refinery may explore various options of listing, including listing by introduction, offer for sale, and initial public offering (IPO), among others, citing the listing of major oil and gas companies such as Seplat Energy and Aradel Plc.
“Alhaji Aliko Dangote should reciprocate this supportive government policy. Dangote is no doubt a friend of the investors. We shareholders appreciate him. We call on him to list the Dangote Refinery on the stock exchange, too. This is the time to do it, and we are sure that Dangote Cement, Dangote Sugar Refinery and NASCON, Dangote Petroleum Refinery will also be a huge success in the stock market.
“The stock market has a pass-through effect that directly and indirectly transfers economic wealth creation to the general populace. That explains why companies that play important economic roles and are beneficiaries of national policies should consider listing as a priority,” Dr Umar said.
