Tinubu Assures Naira Oil Sales Will Stabilize Nigeria’s Refining Sector

President Bola Tinubu on Tuesday said with the current naira-based sales of crude oil and petroleum products, there will be some level of stability in the downstream sector.

Tinubu, who spoke at the review meeting of the technical committee on the implementation of the new arrangement at the State House in Abuja, urged members of the committee to resolve any problems that arise.

He said the naira transactions were designed to remove obstacles to the exchange rate, stressing that his administration is determined to do away with solutions that are not progressive.

The President said: “Whatever solution we propose regarding the sale of crude oil and petroleum products in the Naira, it should not take us back to our experience of the last 40 years. There may be an adjustment in costs and revenues in the oil sector, but the problem is that the government will not have to go back to the old way of doing things.”

Tinubu said various players in the oil sector, including the Nigerian National Petroleum Corporation (NNPC) and the Dangote Refinery, must work to improve the economy and standard of living of Nigerians.

He urged stakeholders to look inward and consider supplying sufficient quantities of petrol and petroleum products for local consumption to end the persistent dependence on imports. According to him, this will allow foreign currency to be used to develop the real sector.

The President advised stakeholders to partner with Afreximbank as a clearing bank for the settlement of oil and petroleum products prices.

Afreximbank has already acted as a financial consultant.

He added: “The market should determine what we do. Once you allow the market to determine profit and loss, independent marketers and government can meet on the worksheet. I want the problems to be resolved without wasting time in the future.

“We can have energy security and the motivation of Alhaji Aliko Dangote will not be defeated. This will be more predictable in the medium and long term.”

Earlier, the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, said the administration’s innovative moves to sell oil in Naira would not be reversed. Edun said the government would not be involved in determining the exchange rate for the oil sector.

Dangote Group President and Chief Executive Officer Aliko Dangote told the President that his refinery has over 500 million liters of fuel in reserve after supplying 400 million liters to the domestic market.

Dangote said the refinery could collaborate with other NNPC-operated refineries to meet the estimated 32 million liters of local gasoline demand.

At the meeting, the Chairman of the Federal Inland Revenue Service (FIRS), Zach Adedeji, who chairs the technical committee, said importation of refined petroleum products should cease as soon as Nigeria develops the capacity to produce sufficient quantities to meet domestic needs.

“Mr President’s goal is to make Nigeria a hub for the export of petroleum products to the world,” Adedeji explained.

Other stakeholders at the meeting included the President and Chairman of the Board of Afreximbank, Professor Benedict Oramah; Minister of Budget and National Planning, Senator Abubakar Bagudu; and NNPC Group Managing Director Mele Kyari.

Also present at the meeting were the Special Adviser to the President on Energy, Olu Verheyen, and the heads of the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Ports Authority (NPA), as well as the head of the Nigerian Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, and the Chief Executive of the Nigerian Petroleum Producing and Processing Regulatory Agency (NMDPRA) Farooq Ahmed.

Also briefing journalists, Edun shared his thoughts on his meeting with Tinubu regarding the implementation of the initiative to sell crude oil to local refineries in Naira.

He said the initiative received the full support of the Federal Executive Council (FEC) with the aim of stabilizing the oil market and expanding local production capacity.

Edun said: “We had a meeting with Mr. President to review the implementation of this bold initiative. This allows local refineries to purchase crude oil and sell their products in Naira to the Nigerian public.”

He hailed Dangote Group’s significant investment in the 650,000 barrels per day refinery as a key enabler of the initiative.

Edun stressed that the implementation committee worked diligently with various stakeholders including regulatory bodies such as NMDPRA and NNPC to ensure the success of the initiative.

He said: “We have achieved the establishment of market prices for petroleum products. This, coupled with market prices of foreign exchange, puts our economy on the path to industrialization.”

Edun highlighted the wider economic implications of the initiative, saying it will provide essential raw materials not only for agriculture but also for industries such as chemicals, textiles and building materials.

“This is part of Mr. President’s strategy to create an enabling environment for private sector investment, job creation and economic growth,” he explained.

Meanwhile, yesterday, for the umpteenth time, the NNPC increased the price of petrol, especially in Lagos and Abuja.

This was the third price increase in less than two months, with the pump price in Lagos rising from N998 per liter to N1,025 and in Abuja from N1,030 to N1,060 per liter.

Outlets in Lagos and Abuja responded immediately with an increase as Nigerians faced the harsh consequences of the removal of subsidies and a completely deregulated downstream environment.

Amid rising demand, fuel queues persisted in Abuja on Tuesday as the NNPC mega filling station in Zone 1 was besieged by motorists while many private filling stations were selling for over N1,200 per litre.

Deji Elumoye and Emmanuel Adde

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