President Tinubu commits to Naira-based oil sales for sector stability
…urges stakeholders to prioritize national interests
By Kunle Sanni
President Bola Tinubu pledged to drive stability in Nigeria’s oil sector through Naira-based transactions for crude oil and refined products, urging stakeholders to align efforts with national economic priorities.
Tinubu’s remarks came on Tuesday during a meeting with the Implementation Committee on Naira-based crude oil sales, held at the State House, Abuja.
The President commended the committee’s progress, emphasizing the importance of resolving initial challenges associated with the shift to local currency transactions. Tinubu explained that this strategy aims to eliminate foreign exchange-related barriers within the oil sector.
“Whatever solution we proffer in crude oil and refined products sales in Naira should not take us back to our experience of the last 40 years,” he said in a statement released by Bayo Onanuga, Special Adviser to the President on Information and Strategy. “While adjustments in costs and revenue are possible, the government will not revert to outdated practices.”
President Tinubu called on industry leaders, including the Nigerian National Petroleum Corporation Ltd. (NNPC) and the Dangote Refinery, to bolster the economy and improve Nigerians’ livelihoods by ensuring sufficient local petroleum supply.
By focusing on domestic production, Tinubu noted, Nigeria could reduce its dependence on imports and redirect foreign exchange towards critical sectors of the economy.
To address transaction stability, Tinubu advised stakeholders to collaborate with the African Export-Import Bank (Afreximbank) as a settlement partner for Naira-based crude oil and product sales, ensuring smooth financial operations.
“The market must guide our operations,” he added. “Allowing market dynamics to set profit and loss will enable independent marketers and government to align efficiently. I want all outstanding issues resolved without future delays.”
Tinubu underscored the goal of achieving energy security and sustainable motivation for investments like the Dangote Refinery, aiming for medium- to long-term predictability in the sector.
The Finance Minister and Coordinating Minister of the Economy, Wale Edun, reiterated the administration’s commitment to the Naira-based oil sales initiative, emphasizing that the government will not interfere in setting exchange rates within the sector.
Aliko Dangote, President of Dangote Group, reported that his refinery currently holds over 500 million liters of fuel in reserve after supplying 400 million liters to the market. He highlighted the potential for collaboration with NNPC-managed refineries to meet the country’s 32 million liters daily petrol requirement.
Zach Adedeji, Chairman of the Federal Inland Revenue Service and head of the technical committee on Naira-based oil sales, noted that the shift would end import dependency as local production capacity expands. “The President’s vision is to transform Nigeria into a hub for refined product exports,” Adedeji stated.
Key stakeholders at the meeting included Prof. Benedict Oramah, President of Afreximbank; Senator Abubakar Atiku Bagudu, Minister of Budget and National Planning; NNPC Group Managing Director Mele Kyari; and other energy sector leaders such as Olu Verheijen, Special Adviser on Energy, alongside executives from NIMASA, Nigerian Ports Authority, and regulatory bodies including NMDPRA.
