In a recent statement, President Bola Tinubu assured Nigerians of stability in the oil sector, highlighting the government’s commitment to implementing the Naira for crude policy. This announcement came during a meeting in Abuja on Tuesday, where Tinubu expressed confidence in the ongoing reforms aimed at enhancing the sector’s operations.
The President’s Special Adviser on Information and Strategy, Bayo Onanuga, shared insights from the meeting through a post on his X handle. Tinubu praised the implementation committee responsible for the Naira-based sales of crude oil and refined products, urging them to address any initial challenges they may encounter.
During the review meeting, Tinubu emphasized that the policy of using the Naira was designed to eliminate the barriers posed by fluctuating exchange rates. He stated, “Whatever solution we proffer in crude oil and refined products sales in Naira should not take us back to our experience in the last 40 years.”
The President highlighted the critical role of various stakeholders in the oil sector, including the Nigerian National Petroleum Company Limited (NNPC Ltd) and Dangote Refinery. He urged these entities to work collaboratively to boost the economy and improve the living standards of Nigerians.
Addressing the reliance on imported petroleum products, Tinubu called for stakeholders to focus on local production. “We must supply enough petroleum products for local consumption to stop the persistent reliance on importation,” he noted, adding that this would facilitate the channeling of foreign exchange into the real sector.
Moreover, the President advised stakeholders to engage Afreximbank as a settlement bank for the Naira pricing of crude and refined products. “Afreximbank is already on board as the financial adviser,” he confirmed, underlining the importance of allowing the market to dictate profit and loss.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, echoed the President’s sentiments, asserting that the administration’s groundbreaking initiative to sell crude in Naira would remain unchanged. He clarified that the government would not intervene in setting exchange rates within the oil sector.
During the meeting, Zach Adedeji, Chairman of the Federal Inland Revenue Service, stressed the need to end imports of refined products once domestic production meets demand. “The vision of Mr. President is to turn Nigeria into a hub for refined products to export to the world,” Adedeji stated, highlighting the government’s broader economic goals.
The meeting also included prominent figures such as Benedict Oramah from Afreximbank, Abubakar Bagudu, the Minister of Budget and National Planning, and Mele Kyari, Group Managing Director of NNPC Ltd. Other attendees were the President’s special adviser on energy, Olu Verheijen, along with key regulatory officials from the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Ports Authority.
In recent developments, the Federal Executive Council had directed NNPC Ltd to engage with Dangote Refinery and other local refineries to resolve disputes concerning crude oil sales. The government officially commenced the sale of crude oil and refined products in Naira on October 1, marking a significant shift in Nigeria’s oil sales policy.
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