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Crude for Naira: Tinubu assures of improved stability in oil sector, urges stakeholders on national interest

President Bola Ahmed Tinubu (centre) in a Meeting with Alhaji Aliko Dangote, Malam Mele Kyari, and Other Oil Sector Stakeholders, in the State House, Abuja, FCT

*President Bola Ahmed Tinubu urges various players in the oil sector, including the Nigerian National Petroleum Company Limited and Dangote Petroleum Refinery, to work together to improve the economy and livelihood of Nigerian consumers

Gbenga Kayode | ConsumerConnect

President Bola Ahmed Tinubu has assured Nigerian energy consumers of more stability in the downstream petroleum industry as the country proffers solutions in crude oil and refined products sales in Naira.

Tinubu, who stated this while speaking Tuesday, October 29, 2024, in Abuja, FCT, commended the Implementation Committee on the Naira-based sales of crude oil and refined products and asked the members to resolve any teething problems.

In a review meeting at the State House, the President also averred that using the Naira was conceived to remove the exchange rate hurdle in crude and refined petroleum products transactions.

Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, also stated President Tinubu said: “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.”

Why Nigeria should end persistent fuel importation, by Tinubu

President Tinubu said the various players in the oil sector, including the Nigerian National Petroleum Company Limited (NNPCL) and the  Dangote Petroleum Refinery, should work together to improve the economy and the livelihood of Nigerians.

Tinubu also urged oil industry stakeholders to look inwards and consider supplying enough petrol and petroleum products for local consumption to stop the persistent reliance on importation.

According to the Nigerian leader, this would enable the channelling of Foreign Exchange (Forex) into the development of the real sector of the country’s economy.

He further advised stakeholders to use Afreximbank as a settlement bank to resolve the Naira pricing for crude and refined products.

Afreximbank is already on board as the financial adviser, the statement noted.

President Tinubu asserted: “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 equally stated: “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.”

Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy, said the administration’s groundbreaking steps to sell crude in Naira would not be reversed.

Edun noted that the Nigerian Government would not be involved in determining the rate of exchange for the oil sector.

Speaking at the forum Tuesday, Alhaji Dangote, President and Chief Executive of Dangote Group, told President Tinubu, that his refinery has over 500 million litres of fuel in reserve after supplying 400 million to the economy.

Dangote also stated the refinery could collaborate with the other oil refineries managed by NNPC Limited meet estimated 32 million litres of local petrol for local consumption.

How Nigeria should end refined petroleum products importation: FIRS Chairman

Mr. Zach Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), who chairs the Technical Committee, said importing refined products should end, once Nigeria has the capacity to produce enough to meet domestic needs.

Adedeji said: “The vision of Mr. President is to turn Nigeria into a hub for refined products to export to the world.”

Other stakeholders at the meeting included Prof. Benedict Oramah, the President and Chairman of the Board of Afrexim Bank, and Sen. Abubakar Atiku Bagudu, Honourable Minister for Budget and National Planning, and Malam Mele Kyari, Group Chief Executive Officer (GCEO) of NNPC Limited.

Also in attendance at the meeting were Olu Verheijen, President’s Special Adviser on Energy, and the CEOs of NIMASA and Nigerian Ports Authority (NPA), as well as Engr. Gbenga Komolafe, Head of Upstream Regulator, and Farouk Ahmed, Head of Midstream and Downstream Regulator (NMDPRA).do_widget id=heateor_sss_sharing-2]

 

 

 

 

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