Tinubu's Govt Meets With Dangote Officials, Shares Fresh Position on Naira-For-Crude
- The Bola Tinubu-led federal government on Tuesday, April 9, said its naira-for-crude initiative with local refineries is still in effect
- The FG said the initiative will continue immediately—overruling the decision of the the Nigerian National Petroleum Company Limited (NNPCL) under its former boss, Mele Kyari
- Legit.ng reports that the government stated that the initiative is not a temporary measure but a “key policy directive designed to support sustainable local refining”
Legit.ng journalist Ridwan Adeola Yusuf has over 9 years of experience covering governance.
FCT, Abuja - The Bola Tinubu-led federal government has said the naira-for-crude oil deal will continue after the first phase ends on Monday, March 31.
As reported by Channels Television on Wednesday, April 9, the federal government said its naira-for-crude initiative with local refineries is not a temporary measure but a “key policy directive designed to support sustainable local refining”.
The ministry of finance announced after a meeting between the technical sub-committee on the crude and refined product sales in naira initiative, Wale Edun, minister of finance, and Zacch Adedeji, the chairman of the committee and the executive chairman of the Federal Inland Revenue Service (FIRS).
Also at the meeting are representatives of Dangote Petroleum refinery and Dapo Segun, the chief financial officer of Nigerian National Petroleum Company (NNPC) Limited, the coordinator of NNPC refineries; management of NNPC Trading; and senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Legit.ng reports that fuel is vital to Nigeria's economy, with oil accounting for a large portion of exports and government revenue, but the country faces challenges due to reliance on fuel imports and recent fuel subsidy removal, impacting businesses and everyday life.
In January 2023, the Dangote refinery began processing crude into diesel, naphtha, jet fuel, and gasoline in September 2023.
The ministry of finance said:
“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC).
“Thus, the Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.
“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time.”
Read more content on fuel in Nigeria:
- Protesting Itsekiri youths shut down oil facility in Delta, video trends
- Fuel hike forces Adamawa residents to trek as businesses collapse
- Oil cartels reportedly responsible for hike in petrol prices by Dangote Refinery
N930/litre: New fuel prices expected at NNPC, others
Earlier, Legit.ng reported that oil marketers said that petrol prices at the pump in Nigeria would reduce and bring a sense of relief to motorists paying over N930 per litre.
The prediction followed global crude prices plummeting to $63 per barrel on Tuesday, April 8.
The executive secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Isong, expressed grave concerns about the economic implications of this downturn.
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Source: Legit.ng
