President Bola Tinubu has commended the committee on the implementation of Naira-based sales of crude oil and refined products and asked members to address any teething problems that may arise from the policy.
According to a statement by his spokesperson, Bayo Onanuga, Tinubu said at a review meeting at the State House that the Naira was used in oil sales transactions to overcome the exchange rate hurdle.
“Whatever solution we offer in selling crude oil and refined products in Naira, we should not take us back to our experience of the last 40 years.
“There may be cost and revenue adjustments in the oil sector, but the point is that the government will not have to go back to the old way of working,” the President said.
President Tinubu charged various players in the oil sector including the Nigerian National Petroleum Corporation Limited (NNPCL) and Dangote Refinery to work towards improving the economy and livelihoods of Nigerians.
He urged stakeholders to look inward and consider supplying adequate petrol and petroleum products for local consumption to prevent continued dependence on imports.
Tinubu said this would allow foreign exchange to be channeled into real sector development.
The President advised stakeholders to use Afreximbank as a settlement bank to resolve Naira pricing for crude and refined products, which is already on board as financial advisor.
“The market has to decide what we are doing. Once you allow the market to determine profits and losses, independent marketers and government parties can meet on a worksheet. “I want the issues to be resolved in future without any wastage of time,” he said.
“We can have energy security, and the inspiration of Alhaji Aliko Dangote will not be defeated. “It will be more predictable on a medium and long-term basis,” the President said.
Coordinating Minister of Finance and Economy, Wale Edun, said the administration's unprecedented move to sell crude in Naira will not be rolled back, ensuring that the government will not be involved in setting the exchange rate for the oil sector.
Chairman and Chief Executive of Dangote Group, Alhaji Aliko Dangote told the President that the refinery has over 500 million liters of fuel reserve after supplying 400 million to the economy.
He said the refinery could collaborate with other refineries managed by NNPC Limited to meet the estimated 32 million liters of local petrol needs.
At the meeting, Chairman of the Federal Inland Revenue Service (FIRS), Jack Adedeji, who chaired the technical committee, said once the country has the capacity to produce enough to meet domestic needs, importation of refined products should stop.
“Mr President’s vision is to transform Nigeria into a hub of refined products for export to the world,” Adedeji said.
Other stakeholders at the meeting included the Chairman and Chairman of the Board of Afrexim Bank, Prof. Benedict Ormah and Minister of Budget and National Planning, Senator Abubakar Atiku Bagudu, as well as Group Managing Director of NNPC Limited, Mele Kyari.
Special Adviser to the President on Energy, Olu Verheijen, and CEOs of NIMASA and Nigerian Ports Authority, including the Head of the Upstream Regulator, Engineer Gbenga Komolafe, the Head of the Midstream and Downstream Regulator (NMDPRA), Farouk Ahmed, also participated.
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