Naira Use For Crude Oil Transaction Conceived To Remove Exchange Rate Barrier — Tinubu

President Bola Tinubu has commended the committee on the implementation of Naira-based sales of crude oil and refined products and asked the members to resolve any teething problems arising from the policy.

Tinubu, in a review meeting at the State House, according to a statement by his spokesman, Bayo Onanuga, said using the Naira in the transaction of oil sale was conceived to remove the exchange rate hurdle.

“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.

“There can be cost and revenue adjustment in the oil sector, but the issue is that the government will not have to go back to the old way of doing things,’’ the President stated.

President Tinubu charged various players in the oil sector, including the Nigerian National Petroleum Corporation Ltd (NNPCL) and the Dangote Refinery to work towards improving the economy and the livelihood of Nigerians.

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He urged stakeholders to look inward and consider supplying enough petrol and petroleum products for local consumption to stop persistent reliance on importation.

Tinubu said this would enable channeling of foreign exchange into the development of the real sector.

The President advised stakeholders to use the Afreximbank as a settlement bank to resolve the Naira pricing for crude and refined products which is already on board as the financial adviser.

“The market must determine what we are doing. Once you allow the market to determine the profit and loss, independent marketers and the government side can meet on the worksheet. I want the issues resolved without future waste of time,’’ he added.

“We can have energy security, and the motivation for Alhaji Aliko Dangote will not be defeated. It will be more predictable on a medium and long-term basis,’’ the President said.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the administration’s groundbreaking steps to sell crude in Naira would not be reversed, maintaining that the government would not be involved in determining the exchange rate for the oil sector.

The President and Chief Executive of Dangote Group, Alhaji Aliko Dangote told the President that the refinery had more than 500 million litres of fuel in reserve after supplying 400 million to the economy.

He said the refinery could collaborate with the other refineries managed by NNPC Ltd to meet an estimated 32 million litres of local petrol needs.

At the meeting, Chairman, Federal Inland Revenue Service (FIRS), Zach Adedeji, who chairs the technical committee, said importing refined products should end once the nation has the capacity to produce enough to meet domestic needs.
“The vision of Mr President is to turn Nigeria into a hub for refined products to export to the world,” Adedeji said.

Other stakeholders at the meeting included the President and Chairman of the Board of Afrexim Bank, Prof. Benedict Oramah and the Minister of Budget and National Planning, Senator Abubakar Atiku Bagudu, as well as the Group Managing Director of NNPC Limited, Mele Kyari.

Presidential Special Adviser on Energy, Olu Verheijen, and the CEOs of NIMASA and Nigerian Ports Authority also attended, along with head of Upstream Regulator, Engineer Gbenga Komolafe, including the Head, Midstream & Downstream Regulator (NMDPRA), Farouk Ahmed.