Naira-for-crude: Tinubu urges understanding among stakeholders

On Tuesday, President Bola Tinubu praised the Implementation Committee responsible for the Naira-based sales of crude oil and refined products. He urged the committee members to address any initial challenges, asserting that the government will not revert to previous practices.

Tinubu delivered this message during a review meeting held at the State House in Abuja. The Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, shared details of the meeting in a statement titled “President Tinubu assures more stability in the oil sector with Naira for crude transactions; urges stakeholders to prioritize national interests.”

The President explained that the shift to using the Naira aims to eliminate obstacles related to exchange rates. “Any solutions we implement regarding crude oil and refined products sold in Naira must not lead us back to the issues we’ve faced over the past 40 years. While there may be adjustments in costs and revenues within the oil sector, we will not return to outdated methods,” he emphasized.

Tinubu encouraged all participants in the oil industry, including the Nigerian National Petroleum Corporation Ltd and the Dangote Refinery, to focus on enhancing the economy and improving the lives of Nigerians. He called on stakeholders to prioritize local production of petrol and other petroleum products to reduce dependency on imports, which would help redirect foreign exchange towards developing the real sector.

He also suggested that stakeholders utilize Afreximbank as a settlement bank to facilitate Naira pricing for crude and refined products, noting that Afreximbank is already engaged as a financial adviser.

“The market must dictate our actions. By allowing the market to determine profits and losses, independent marketers and the government can collaborate effectively,” he stated, adding that he wants issues resolved promptly to avoid future delays.

The President expressed confidence in achieving energy security and ensuring that Alhaji Aliko Dangote’s motivations remain strong. “Long-term predictability will be enhanced,” he added.

Finance Minister and Coordinating Minister of the Economy, Wale Edun, reassured Tinubu that the government’s transformative move to sell crude oil in Naira will remain in place, emphasizing that the administration will not set exchange rates for the oil sector.

Aliko Dangote, President and CEO of Dangote Group, informed the President that the refinery currently holds over 500 million liters of fuel in reserve after supplying 400 million liters to the economy. He indicated that the refinery could partner with other NNPC Ltd facilities to satisfy an estimated local demand of 32 million liters of petrol.

Zach Adedeji, head of the Federal Inland Revenue Service and chairman of the technical committee, remarked that importing refined products should cease once domestic production meets demand. “Mr. President’s vision is to establish Nigeria as a hub for refined products for global export,” Adedeji stated.

Other attendees at the meeting included Prof. Benedict Oramah, President and Chairman of the Board of Afreximbank, Abubakar Bagudu, Minister of Budget and Economic Planning, and Mele Kyari, Group CEO of NNPC Limited. The President’s Special Adviser on Energy, Olu Verheijen, along with the CEOs of NIMASA and the Nigerian Ports Authority, and leaders from the upstream and midstream & downstream regulatory bodies, were also present.