Sign in

Tinubu Assures Oil Sector Stability with Naira for Crude Transactions

Published

Wednesday, October 30, 2024 at 09:38 AM

Written by Love Patience Tarimoboere

Tinubu Assures Oil Sector Stability with Naira for Crude Transactions

President Bola Ahmed Tinubu has commended the implementation committee of the naira-based sales of crude oil and refined products and asked the members to resolve any aching problems.

The president in a review meeting at the State House, Abuja, on late Tuesday evening, said that using the naira was conceived to remove the exchange rate hurdle.

“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.”

“There can be cost and revenue adjustment in the oil sector, but the issue is that the government will not have to go back to the old way of doing things,” the president stated.

He said the various players in the oil sector, including the Nigerian National Petroleum Corporation Ltd. (NNPCL) and the Dangote Refinery, should work to improve the economy and the livelihood of Nigerians.

The president urged stakeholders to look inward and consider supplying enough petrol and petroleum products for local consumption to stop the persistent reliance on importation.

He also stated that this would enable the channeling of foreign exchange into the development of the real sector.

President Tinubu advised stakeholders to use Afreximbank as a settlement bank to resolve the naira pricing for crude and refined products. Afreximbank is already on board as the financial adviser.

“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.”

“We can have energy security, and the motivation for Alhaji Aliko Dangote will not be defeated. It will be more predictable on a medium and long-term basis,” the president advised.

Wale Edun who is the Minister of Finance and Coordinating Minister of the Economy, said the administration’s groundbreaking steps to sell crude in naira would not be reversed.

He said the government would not be involved in determining the exchange rate for the oil sector.

Aliko Dangote, the president and chief executive of Dangote Group, told the president that the refinery had more than 500 million litres of fuel in reserve after supplying 400 million to the economy.

He said the refinery could collaborate with the other refineries managed by NNPCL to meet an estimated 32 million litres of local petrol needs.

Zach Adedeji, chairman, Federal Inland Revenue Service, who chairs the technical committee, said; “Importing refined products should end once the capacity to produce enough to meet domestic needs was achieved.”

“The vision of Mr President is to turn Nigeria into a hub for refined products to export to the world,” he stated.

Also present at the meeting were; Benedict Oramah, the president and chairman of the Board of Afreximbank, and Abubakar Atiku Bagudu, the Minister of Budget and National Planning and Mele Kyari, group managing director of NNPC Limited, among others.

Edited By: Chinedu Eze

The journey to greatness is one step at a time and you should be part of it.

Join the NDconnect community channels on WhatsApp and Telegram to get News updates and add to the voices shaping the future : ❤️

WhatsApp Channel: https://whatsapp.com/channel/0029VajWDeK29754T7BzHU2H

WhatsApp Community: https://chat.whatsapp.com/Dlm6LmlgmzaKCMUYP4BPwC

Telegram t.me/NDConnectNewsAlert

11 months ago

Apprehend Kidnappers of Justice Umukoro

11 months ago

Rivers: Peace at What Price?

11 months ago

2027: Can the Coalition Work?

1 year ago

Tinubu, Democracy Day, and June 12

1 year ago

Diri at 66: Daring The Terrain in Bayelsa

1 year ago

PDP's Rescue Mission

1 year ago

Reoccurring Nightmare of Police Brutality

1 year ago

Adieu Pa Clark (May 25, 1927 to February 17, 2025)

1 year ago

All Eyes on Pope Leo XIV

see more

Ex-agitators Back Dickson, Others on South South Development Commission

1 year ago

Otti Announces 13th-Month Salary, Set to Review Minimum Wage

...Assures of regular salary, pensions

1 year ago

Foreign Investments in Nigeria's Telecom Sector Hit Record Low

1 year ago

Regina Daniels Bags Degree In Psychology

1 year ago

FG Meets With Labour Leaders Over Fuel Price Hike

1 year ago

Abia Man Stabbed Over Phone, Shops and Homes Burnt

Niger Delta Connect is an award winning indigenous and community based news platform that delivers high quality and original stories that shine light on emerging developments, connect & unravel underreported realities in the Niger Delta.

Your News

Niger Delta News

Inside naija

World News

Quick Links

Tinubu Assures Oil Sector Stability with Naira for Crude Transactions

President Bola Ahmed Tinubu has commended the implementation committee of the naira-based sales of crude oil and refined products and asked the members to resolve any aching problems.

The president in a review meeting at the State House, Abuja, on late Tuesday evening, said that using the naira was conceived to remove the exchange rate hurdle.

“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.”

“There can be cost and revenue adjustment in the oil sector, but the issue is that the government will not have to go back to the old way of doing things,” the president stated.

He said the various players in the oil sector, including the Nigerian National Petroleum Corporation Ltd. (NNPCL) and the Dangote Refinery, should work to improve the economy and the livelihood of Nigerians.

The president urged stakeholders to look inward and consider supplying enough petrol and petroleum products for local consumption to stop the persistent reliance on importation.

He also stated that this would enable the channeling of foreign exchange into the development of the real sector.

President Tinubu advised stakeholders to use Afreximbank as a settlement bank to resolve the naira pricing for crude and refined products. Afreximbank is already on board as the financial adviser.

“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.”

“We can have energy security, and the motivation for Alhaji Aliko Dangote will not be defeated. It will be more predictable on a medium and long-term basis,” the president advised.

Wale Edun who is the Minister of Finance and Coordinating Minister of the Economy, said the administration’s groundbreaking steps to sell crude in naira would not be reversed.

He said the government would not be involved in determining the exchange rate for the oil sector.

Aliko Dangote, the president and chief executive of Dangote Group, told the president that the refinery had more than 500 million litres of fuel in reserve after supplying 400 million to the economy.

He said the refinery could collaborate with the other refineries managed by NNPCL to meet an estimated 32 million litres of local petrol needs.

Zach Adedeji, chairman, Federal Inland Revenue Service, who chairs the technical committee, said; “Importing refined products should end once the capacity to produce enough to meet domestic needs was achieved.”

“The vision of Mr President is to turn Nigeria into a hub for refined products to export to the world,” he stated.

Also present at the meeting were; Benedict Oramah, the president and chairman of the Board of Afreximbank, and Abubakar Atiku Bagudu, the Minister of Budget and National Planning and Mele Kyari, group managing director of NNPC Limited, among others.

Apprehend Kidnappers of Justice Umukoro

Rivers: Peace at What Price?

2027: Can the Coalition Work?

Tinubu, Democracy Day, and June 12

Diri at 66: Daring The Terrain in Bayelsa

PDP's Rescue Mission

Reoccurring Nightmare of Police Brutality

Adieu Pa Clark (May 25, 1927 to February 17, 2025)

All Eyes on Pope Leo XIV

see more

Recommended Stories

Ex-agitators Back Dickson, Others on South South Development Commission

Otti Announces 13th-Month Salary, Set to Review Minimum Wage

Foreign Investments in Nigeria's Telecom Sector Hit Record Low

Regina Daniels Bags Degree In Psychology

FG Meets With Labour Leaders Over Fuel Price Hike

Abia Man Stabbed Over Phone, Shops and Homes Burnt