Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, stated on Tuesday that selling crude oil in naira to local refiners has put the Nigerian economy on the course of industrialization and modernization.
Edun, who is also the chairman of the committee, made this remark while speaking to State House correspondents following a meeting with President Bola Tinubu at the Presidential Villa, where they reviewed the initiative of selling crude oil in naira to local refiners.
He emphasized that this significant initiative, which has received full endorsement from the Federal Executive Council (FEC), ensures that crude oil is sold to local refiners in naira. These refiners then sell the refined products to marketers using the same currency.
He mentioned that while there is still a lot to be accomplished, a clear pathway to industrial development and modernization of the Nigerian economy exists.
This is largely due to the favorable key prices, which are motivating private sector investment.
With private sector refining of crude oil, we now have raw materials, not just for agriculture, but for industry, for chemicals, for paints, for building materials, and for textiles.
“And of course, this is Mr President’s strategy and his policy of making conditions right for the private sector to invest, create jobs, and grow the economy.
“Likewise, the market pricing of petroleum products has also paved the way for NNPC to restore its balance sheet, restore its financial fortunes, and give the federal, state and local governments more funding.
“This allows them to meet their obligations, salary payments to workers, social services to the population generally, and key infrastructure development,” said Edun.
The minister stated that the meeting assessed the progress of the initiative aimed at overcoming the initial challenges to the successful implementation of selling crude oil in naira to domestic refiners, along with the corresponding sale of petroleum products in naira.
He also noted that AfreximBank, acting as the financial adviser, participated in the meeting and will serve as an intermediary to facilitate transactions between the seller and buyer of the crude oil.
Edun stated that the scheme, initiated by the President, was also made feasible thanks to the bold and courageous investment by the Dangote Group in a local refinery with a capacity of 650,000 barrels per day.
The stakeholders involved include the regulators such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NNDPRA) and the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
Additionally, other participants include the Nigerian Maritime Administration and Safety Agency (NIMASA), NNPCL, the Nigerian Ports Authority (NPA), the Navy, and numerous other stakeholders.
Alhaji Aliko Dangote, chairman of Dangote Refinery and Petrochemical Company, expressed that his company would be capable of meeting local demand with the supply of crude provided by NNPCL.
“This initiative will actually revive a lot of industries in plastic, cooking gas, which is LPG, aviation, gas, Oil, not only PMS.
“At about 420,000 barrels per day, we still have capacity to grow. We are ramping up our capacity. Once we get there, we have enough naira crude, we’ll be able to fully satisfy the market.
“But when NNPC refineries start working going forward, then Nigeria will be one of the biggest exporters of Petroleum products in history,” said Dangote.
He mentioned that the President committed at the meeting to support domestic industries, ensure the functionality of local refineries, and encourage greater investment in the country.
