The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has formally inaugurated a technical sub-committee tasked with developing a framework for selling crude oil to local refineries in Naira.
This move is in line with President Bola Tinubu’s recent directive, aimed at boosting Nigeria’s refining capabilities and driving economic growth.
In a post shared on Wednesday via the Ministry of Finance’s official X handle, it was revealed that the inauguration took place after a crucial stakeholders’ meeting.
This meeting brought together key government officials and representatives from local refineries, including the Dangote Refinery, to discuss the implementation strategy of this significant policy.
The technical sub-committee is composed of several prominent members, including the Permanent Secretary of the Ministry of Finance, Mrs. Lydia Jafiya, and the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji. Additionally, representatives from the Nigerian National Petroleum Corporation Limited are also part of this strategic team.
In his remarks, Edun underscored the importance of the committee’s work in crafting a comprehensive template to ensure the initiative’s successful execution.
He stated, “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.”
He also commended the committee members for their commitment, encouraging them to work with diligence to fulfill the expectations laid out by the presidential directive.
Edun emphasized that the overarching goal of this initiative is to transform Nigeria’s energy sector into one that is both self-sufficient and competitive on a global scale.
Just days before, on Monday, the Finance Minister had convened a stakeholders’ meeting to pave the way for the smooth implementation of President Tinubu’s directive concerning the sale of crude oil to local refineries in Naira.
The Federal Executive Council had, on July 29, approved Tinubu’s proposal, which mandates the NNPCL to stop selling crude oil to local refineries in foreign currency.
By shifting these transactions to the Naira, the government aims to empower local refineries, including the recently commissioned Dangote Refinery, enabling them to operate more sustainably and contribute to the broader economic landscape of Nigeria.
The Naira Crude Sales initiative is expected to have profound impacts on Nigeria’s economy.
By ensuring that crude oil sales to local refineries are conducted in Naira, the government is striving to create a more stable economic environment.
This shift is anticipated to reduce Nigeria’s dependency on imported refined products, enhance the domestic oil sector’s value chain, and generate employment opportunities.