In a pivotal step towards greater economic stability, President Bola Ahmed Tinubu emphasized the transformative potential of Naira-based transactions in Nigeria’s oil sector during a high-level meeting at the State House in Abuja on Tuesday. He commended the Implementation Committee for their efforts in shifting crude oil and refined product sales from foreign currencies to the Naira, and urged members to overcome any remaining challenges in implementation.
The President explained that this Naira-based model was conceived to reduce the constraints of exchange rate fluctuations, a move intended to shield Nigeria from past financial inefficiencies.
“The solutions we develop in handling crude oil and refined products in Naira should prevent us from slipping back into the outdated practices that hindered growth for four decades,” President Tinubu stated, signaling the administration’s commitment to ensuring a sustainable future for the oil sector.
The President underscored the role of major players, including the Nigerian National Petroleum Corporation Ltd (NNPC) and Dangote Refinery, in advancing economic development and improving the livelihoods of Nigerians. He urged stakeholders to prioritize internal supply and reduce reliance on imported petroleum products, which would, in turn, allow foreign exchange to support the development of vital economic sectors.
To aid the transition, President Tinubu recommended using Afreximbank as a settlement bank for Naira transactions in the oil market. With Afreximbank already onboard as a financial adviser, the President expressed confidence that this framework would simplify currency conversion complexities.
“Let market forces determine our direction,” he added, advocating for independent marketers and government representatives to collaborate on a fair profit-and-loss system without reverting to old inefficiencies.
The Minister of Finance, Wale Edun, affirmed the administration’s determination to maintain Naira sales in the oil sector, noting that the government would stay out of exchange rate setting, letting the market lead. Alhaji Aliko Dangote, President of the Dangote Group, shared encouraging news, reporting a reserve of 500 million liters of fuel after supplying 400 million to the economy, and expressing readiness to meet Nigeria’s local fuel demand alongside NNPC.
Federal Inland Revenue Service Chairman Zach Adedeji, who leads the technical committee, also voiced optimism about ending refined product imports as domestic capacity grows. “Mr. President’s vision is to establish Nigeria as a hub for refined products ready for global export,” he stated.
Attendees included key industry figures such as Prof. Benedict Oramah of Afreximbank, Budget and National Planning Minister Sen. Abubakar Atiku Bagudu, NNPC Group Managing Director Mele Kyari, and various agency heads committed to advancing Nigeria’s energy security.
