President Bola Tinubu is currently in a crucial meeting with stakeholders in the oil industry, including Aliko Dangote, to discuss the sale of crude oil and refined products in naira ¹. The meeting, also attended by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, aims to brief the President on the implementation of the policy that commenced on October 1, this year.
As the Minister of Petroleum Resources, President Tinubu oversees the nation’s petroleum industry, making this meeting a significant step towards Nigeria’s economic growth ¹. The policy mandates NNPC to supply approximately 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery, payable in naira.
In return, the Dangote Refinery will supply equivalent values of Premium Motor Spirit (PMS) and diesel to the domestic market, also payable in naira ¹. Additionally, Dangote Refinery has pledged to sell diesel in naira to interested off-takers.
This policy shift is expected to stabilize the pump price of refined fuel and the dollar-naira exchange rate ². The Federal Executive Council approved the proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in naira.
Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited ². This intervention will eliminate the need for international letters of credit and save the country billions of dollars used in importing refined fuel.
The move has been commended by many, citing its potential to boost the economy and reduce reliance on foreign currency ². As the meeting unfolds, stakeholders await the outcome and its implications for Nigeria’s oil industry.
With President Tinubu at the helm, Nigeria is taking bold steps towards economic stability and growth, and this policy is a significant move in that direction ¹….
