President Bola Ahmed Tinubu on Tuesday emphasized his commitment to a more stable and self-sufficient oil sector, as he applauded the strides made by the Implementation Committee on Naira-based sales of crude oil and refined products. During a meeting at the State House, the President urged stakeholders to remain steadfast in their commitment to advancing Nigeria’s interests, while addressing any emerging challenges.
The President reiterated that the move to conduct crude oil transactions in Naira was designed to eliminate exchange rate complexities, enhance economic sovereignty, and foster long-term sustainability. “The intention behind this initiative is to sidestep exchange rate fluctuations that have undermined our oil sector’s potential over the past 40 years. Our goal is a resilient oil market that benefits the nation, without relapsing into old habits,” President Tinubu affirmed.
In calling for transformative industry practices, President Tinubu encouraged critical industry players, including the Nigerian National Petroleum Corporation (NNPC) Limited and the Dangote Refinery, to actively contribute to strengthening Nigeria’s economy and enhancing the welfare of citizens. He urged stakeholders to prioritize local distribution, reduce dependency on imported petroleum products, and redirect foreign exchange toward sectors that fuel industrial and economic growth.
The President highlighted Afreximbank’s pivotal role in this new policy, emphasizing its involvement as a settlement bank to facilitate Naira-denominated transactions in the oil sector. “The market itself must guide our activities. By allowing market forces to determine pricing, we create a level playing field for independent marketers and the government,” he remarked. He called for swift resolution of challenges to avoid any delays and ensure predictable, long-term stability.
President Tinubu underscored that energy security is not only attainable but essential, reiterating that this initiative is designed to support ongoing private sector investments, including Alhaji Aliko Dangote’s significant contributions to refining capacity. “This new direction will ensure predictability, securing energy access on a sustainable basis for all Nigerians,” he said.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, assured the President that the administration’s landmark policy of conducting crude transactions in Naira is here to stay. He confirmed that the government would maintain a hands-off approach in determining exchange rates in the oil sector, promoting transparency and market-driven pricing.
In a significant development, Alhaji Aliko Dangote, President of the Dangote Group, revealed that the refinery has a reserve of over 500 million litres of fuel, with 400 million litres already supplied to the Nigerian market. He expressed optimism about collaborating with NNPC-managed refineries to meet an estimated 32 million litres in local petrol demand, further bolstering Nigeria’s goal of becoming an oil-refining powerhouse.
Federal Inland Revenue Service (FIRS) Chairman and head of the technical committee, Zach Adedeji, noted that once local production aligns with demand, Nigeria’s reliance on refined product imports will end. “The vision of President Tinubu is to transform Nigeria into a leading hub for refined petroleum products, capable of serving both local and international markets,” he said.
Key stakeholders in attendance included Prof. Benedict Oramah, President and Chairman of the Board of Afreximbank, Senator Abubakar Atiku Bagudu, Minister of Budget and National Planning, and Mele Kyari, Group Managing Director of NNPC Limited. Also present were Special Adviser on Energy, Olu Verheijen, along with CEOs from NIMASA, the Nigerian Ports Authority, and other regulators from the upstream and downstream sectors, including Engineer Gbenga Komolafe and Farouk Ahmed.
This strategic shift in oil sector operations signals a transformative era, prioritizing local capacity building and self-reliance as Nigeria steers toward sustainable economic growth and energy independence.
