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Nigerian President Bola Tinubu has assured that the current Naira-based oil sales will stabilise Nigeria’s downstream sector, aiming to reduce reliance on imports. While addressing the technical committee on the implementation of the new arrangement at State House, Abuja, He urged members of the committee to resolve any teething problems.
Nigerian President Bola Tinubu has assured that the current Naira-based oil sales will stabilise Nigeria’s downstream sector, aiming to reduce reliance on imports. While addressing the technical committee on the implementation of the new arrangement at State House, Abuja, He urged members of the committee to resolve any teething problems.
The naira transactions were conceived to remove the exchange rate hurdle, stressing that the administration is determined to do away with decisions that are not progressive. The president stated that whatever solution the country proffer in crude oil and refined products sales in Naira should not take it back to the 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. Tinubu said the various players in the oil sector, including the Nigerian National Petroleum Corporation Limited (NNPC) and Dangote refinery, should work to improve the economy and the livelihoods of Nigerians.
President urged stakeholders to look inward and consider supplying enough petrol and petroleum products for local consumption to stop the persistent reliance on importation. He said this would enable the channelling of foreign exchange to the development of the real sector. The president advised stakeholders to partner with Afreximbank as a settlement bank to resolve the naira pricing for crude and refined products. Afreximbank is already on board as the financial adviser.
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President and Chief Executive of Dangote Group, Aliko Dangote, told the Nigerian President that his refinery had more than 500 million litres of fuel in reserve after supplying 400 million litres to the domestic market. Dangote said the refinery could collaborate with the other refineries managed by NNPC to meet an estimated 32 million litres of local petrol needs.
