President Bola Ahmed Tinubu has called on local refineries to increase their petrol and petroleum product output to reduce Nigeria’s dependency on imported fuels. This push aims to improve the local economy and utilize foreign exchange for developmental projects within the country.
During a review meeting with the Implementation Committee on the Naira-based sales of crude oil and refined products, President Tinubu emphasized the importance of refining fuel domestically. He highlighted that this initiative would not only ensure a steady supply of petrol but also free up valuable foreign currency for other crucial sectors of the economy.
The President pointed out that the shift to using the naira for transactions was designed to eliminate the challenges associated with fluctuating exchange rates. “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,” he stated. His remarks underline a commitment to modernizing Nigeria’s oil sector while avoiding past mistakes that led to economic difficulties.
In addition, President Tinubu advised all stakeholders to consider using Afreximbank as a settlement bank for managing naira pricing related to crude oil and refined products. He expressed confidence that having Afreximbank involved would streamline financial transactions in the oil sector.
“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 said.
The meeting also featured comments from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. He reaffirmed that the government’s innovative approach to selling crude oil in naira would remain unchanged. He further clarified that the government would not intervene in setting exchange rates within the oil industry.
Aliko Dangote, President and Chief Executive of Dangote Group, provided valuable insights during the meeting, revealing that his refinery currently has over 500 million liters of fuel in reserve after supplying 400 million liters to the Nigerian economy.
He mentioned that there is potential for collaboration with other refineries operated by the Nigerian National Petroleum Corporation (NNPC) Ltd to effectively meet the country’s estimated daily petrol requirement of 32 million liters.
