FG inaugurates cttee on naira-based crude sale

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

This initiative aligns with the recent presidential directive aimed at enhancing Nigeria’s refining capacity and promoting economic growth.

Crude oil supply to domestic refineries has been an issue for months, particularly since the multi-billion dollar Dangote Petroleum Refinery came on board.

Domestic crude oil refiners, including the $21bn Dangote refinery, have repeatedly complained about the poor supply of crude to their plants.

They have also called for the sale of crude oil in naira due to the difficulty in accessing the United States dollar and the fluctuation of the local currency against the dollar.

However, in a post on the finance ministry’s official X handle, the ministry stated on Wednesday that the technical sub-committee had been inaugurated to help tackle these concerns.

It said the inauguration took place 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; Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji; as well as representatives from the Nigerian National Petroleum Corporation Limited, Central Bank of Nigeria, AfreximBank, and the Nigerian Upstream Petroleum Regulatory Commission.

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

“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,” the minister stated.

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

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

Recall that on Monday, the finance minister convened a stakeholders meeting to ensure a hitch-free implementation of President Bola Tinubu’s directive for the sale of crude to local refineries in naira.

The Federal Executive Council had on July 29 okayed President Tinubu’s proposal for NNPC 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.