TUC Calls for Special FOREX Rate for Dangote Refinery to Lower Fuel Prices
The Trade Union Congress of Nigeria (TUC) has urged the Federal Government to introduce a special foreign exchange (FOREX) scheme for the Dangote Refinery. The union believes this could lower fuel prices for Nigerians, who are facing growing economic hardship due to recent hikes in petrol prices.
TUC President, Comrade Festus Osifo, made this call during a press briefing in Abuja on Thursday, where he criticized the government’s decision to remove fuel subsidies. Osifo said that the removal was a key factor in Nigeria’s current economic challenges, emphasizing that government intervention in critical sectors like energy is essential to ensure the availability, accessibility, and affordability of fuel.
“If energy is not available at a reduced price, market distortions will occur, leading to speculation. Availability is crucial, and the current scarcity is due to a lack of supply,” Osifo stated. He further explained that if the government offered Dangote Refinery a lower FOREX rate of around N1,200 per dollar, Premium Motor Spirit (PMS) prices could drop below N700 per litre.
The TUC highlighted the exchange rate as the main factor driving high fuel prices. Osifo noted that with the ongoing devaluation of the naira, Nigerians are paying more for imported goods, including fuel. “The naira is undervalued, and this affects not just PMS but also food and fertilizer prices,” he said.
Osifo argued that providing a special FOREX scheme for Dangote Refinery would be a strategic move to lower production costs, boost efficiency, and create jobs. He made it clear that this would not be a subsidy on consumption but rather on production, which would benefit the broader economy.
At present, Dangote Refinery produces approximately 8 million litres of fuel daily—well below Nigeria’s daily consumption requirement of 35 million litres. To address this shortfall, the TUC urged the Federal Government to issue licenses to marketers to source petroleum products directly from Dangote Refinery, rather than relying solely on the Nigerian National Petroleum Company Limited (NNPCL) as the sole distributor.
Osifo also called for transparency regarding the current capacity of Dangote Refinery, which has a stated potential output of 650,000 barrels per day but is not yet meeting national demand. He pressed regulators to expedite measures to ensure the refinery ramps up production to at least 40 million litres per day and urged the government to source additional supplies from other providers in the meantime.
The TUC concluded by demanding a rollback of petrol prices to levels seen before June 2023, when the NNPCL raised the pump price from N184 to as high as N998 per litre. The union insists that reducing the cost of fuel is critical to alleviating the economic burden on Nigerians.
