Victor EzejaMinister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, on Tuesday held a strategic meeting with relevant stakeholders in Abuja to ensure implementation of President Bola Tinubu’s directive for the Nigerian National Petroleum Corporation Limited (NNPCL) to sell crude oil to local refineries in naira.
According to a statement by the Director of Information and Public Relations, Ministry of Finance, Mohammed Manga, the meeting which was to ensure the realisation of this policy objective of the Federal Government, had in attendance Mr. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil); Mr. Mele Kyari, Group Chief Executive Officer of NNPCL; Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS); Mrs. Lydia Shehu Jafiya, Permanent Secretary of the Federal Ministry of Finance; and other notable participants.
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Although details of the meeting were not available, the statement said “the meeting provided an opportunity for in-depth discussions, which underscored longstanding challenges within the petroleum sector.”
It emphasised that the initiative of selling crude oil in naira to local refineries “aims at strengthening the domestic economy as well as supporting the sustainable operations of local refineries, including the Dangote Refinery.”
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“As the meeting drew to a close, a sense of strong confidence and collective purpose filled the air with Edun expressing optimism that with the collaborative efforts of all stakeholders, this groundbreaking initiative will empower local refineries, stimulate economic growth, and redefine the nation’s petroleum landscape.
“By harnessing the collaborative spirit of key stakeholders, Nigeria is poised to witness a transformative shift in its economic trajectory. Thus, the country is set to unlock new opportunities, overcome longstanding challenges, and emerge stronger.
“The Naira Crude Sales initiative marks a significant milestone in Nigeria’s journey towards economic prosperity, and all eyes are on the promising future that lies ahead,” Manga further stated.
Prime Business Africa reports that the Federal Executive Council (FEC) had on 29th July, approved a proposal by President Bola Tinubu directing the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Petroleum Refinery and other local refineries in naira.
In a statement on X, Bayo Onanuga, special adviser on information and strategy to the president, said the decision was to ensure the stability of the pump price of refined fuel and the Dollar-Naira exchange rate.
He said the African Export-Import Bank (Afreximbank) and other settlement banks in Nigeria will facilitate the trade between NNPCL, Dangote and other local refineries, adding that “The game-changing intervention will eliminate the need for international letters of credit. It will also save the country billions of dollars used in importing refined fuel.”
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However, two weeks after, the implementation is yet to kick off.
Last week, the Crude Oil Refinery-owners Association of Nigeria (CORAN) said its members were yet receive crude oil sales in naira.
Prime Business Africa reports that CORAN Publicity Secretary, Echie Idoko, who appeared on Channels Television on Wednesday, said there has to be a guideline on how they can access crude oil in naira.
While commending Tinubu for the initiative, the CORAN spokesperson said mere pronouncement is not enough but “It must be with a force of law, either by executive order or by incorporating it into a new guideline so that the crude producers will be bound to sell to us in naira,” Idoko had stated.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
