Said President Ahmed Tinubu It urged caution in implementing the solution for the sale of crude oil and refined products in Naira, stressing that the approach should not fall back on the experiences of the last 40 years.
Speaking during a review meeting with the Implementation Committee on Naira-based Sales of Crude Oil and Refined Products at the State House, Abuja, Tinubu stressed that although cost and revenue adjustment in the oil sector is necessary, the government should not rely on the old methods. Should avoid returning. ,
He acknowledged that while adjustments to costs and revenues within the sector may be necessary, reforms should ensure that the government does not return to ineffective methods.
He commended the Implementation Committee on Naira-based sales of crude oil and refined products and asked members to resolve any teething problems.
According to a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, the President said the idea of using the Naira was envisioned 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.
Tinubu said various players in the oil sector, including the Nigerian National Petroleum Corporation Limited and Dangote Refinery, should work to improve the economy and livelihoods of Nigerians.
The President urged stakeholders to look inward and consider supplying adequate petrol and petroleum products for local consumption to prevent continued dependence on imports. He said that this will enable foreign exchange to be invested in real sector development.
The President advised stakeholders to use Afreximbank as a settlement bank to resolve Naira pricing for crude and refined products. Afreximbank 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 and the government will not be involved in setting the exchange rate for the oil sector.
The Chairman and Chief Executive of Dangote Group 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, Federal Inland Revenue Service Chairman, Zac Adedeji, who chaired the technical committee, said importation of refined products should be stopped once there is capacity to produce enough to meet domestic needs.
“Mr President’s vision is to transform Nigeria into a hub of refined products for export to the world,” he said.
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