Edun inaugurates sub-committee on naira-based crude sales to local refineries

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has officially inaugurated a technical sub-committee to develop the framework for crude oil sale to local refineries in Naira.

This initiative aligns with the recent directive by President Bola Tinubu to enhance Nigeria’s refining capacity and promote economic growth.

According to a post on the ministry’s official X handle on Wednesday, the inauguration occurred following a stakeholders meeting where government officials and representatives of local refineries, including the Dangote Refinery, gathered to discuss the implementation details of this strategic directive.

The committee members include the Permanent Secretary of the Ministry of Finance, Mrs. Lydia Jafiya; the Executive Chairman, Federal Inland Revenue Service, Dr Zacch Adedeji; representatives from the Nigerian National Petroleum Corporation Limited, among others.

In his remarks, Edun highlighted the committee’s critical role in crafting a robust template that would ensure the successful implementation of the initiative.

He emphasised that “this initiative is part of a broader strategy to position Nigeria as a refining hub, which will significantly boost the economy by reducing reliance on crude oil exports and fostering local expertise in the energy sector.”

Edun commended the committee members for their dedication and anticipated contributions, urging them to work diligently to meet the expectations set by the presidential directive.

He further reiterated that the ultimate goal is to transform Nigeria’s energy sector into a self-reliant and globally competitive one.

Recall that on Monday, the Finance Minister convened a stakeholders meeting to ensure a hitch-free implementation of Tinubu’s directive for selling crude to local refineries in Naira.

The Federal Executive Council had, on July 29, assented to Tinubu’s proposal for the NNPCL to halt the sale of crude oil to local refineries in foreign currency.

By mandating that crude oil transactions for local refineries be conducted in Naira, the government aims to empower these facilities, including the newly commissioned Dangote Refinery, to operate more sustainably and contribute to the nation’s economic growth.

The Naira Crude Sales initiative is expected to have far-reaching implications for Nigeria’s economy. By facilitating crude oil sales in Naira, the government hopes to create a more stable economic environment that will enable local refineries to thrive.

This, in turn, is anticipated to reduce the country’s reliance on imported refined products, enhance the value chain within the oil sector and create jobs.