The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has inaugurated a technical sub-committee to develop a framework for selling crude oil to local refineries in naira. This move aligns with President Bola Tinubu’s directive to enhance Nigeria’s refining capacity and stimulate economic growth.
The initiative comes amid ongoing challenges in crude oil supply to domestic refineries, including the newly operational $21 billion Dangote Petroleum Refinery. Refiners have struggled with poor supply and have advocated for crude sales in naira, citing difficulties in accessing U.S. dollars and currency fluctuations.
The Ministry of Finance announced the formation of the sub-committee on its official X (formerly Twitter) account, noting that the decision followed a stakeholders’ meeting with government officials and representatives from local refineries, including the Dangote refinery. The committee will address the concerns of the refining sector and ensure the smooth implementation of the presidential directive.
Committee members include key figures such as the Permanent Secretary of the Ministry of Finance, Mrs. Lydia Jafiya; the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji; and representatives from the Nigerian National Petroleum Corporation Limited (NNPC), Central Bank of Nigeria, AfreximBank, and the Nigerian Upstream Petroleum Regulatory Commission.
Minister Edun emphasized the committee’s critical role in crafting a robust framework for the initiative. He noted that this effort is part of a larger strategy to position Nigeria as a refining hub, reducing reliance on crude oil exports and fostering local expertise in the energy sector. The goal is to transform Nigeria’s energy industry into one that is self-reliant and globally competitive.
The inauguration of this committee follows a Federal Executive Council decision on July 29, which approved President Tinubu’s proposal to halt crude oil sales to local refineries in foreign currency. By mandating transactions in naira, the government aims to empower local refineries to operate sustainably, contributing to the nation’s economic growth.
This naira-based crude sales initiative is expected to stabilize the economic environment for local refineries, reduce dependence on imported refined products, enhance the oil sector’s value chain, and create jobs, thereby driving significant economic benefits for Nigeria.
