President Tinubu’s Key Discussions On Nigeria’s Fuel Crisis With Dangote And Industry Leaders

During the meeting, President Tinubu directed the committee to address any issues hindering the smooth implementation of this policy, which aims to conduct crude oil and refined product sales in Naira. He emphasized that this approach is designed to eliminate exchange rate complications, signaling a departure from traditional methods in the oil sector.

Presidential spokesperson Bayo Onanuga relayed that President Tinubu highlighted the importance of avoiding past challenges in the oil industry. “Any solution we propose for crude oil and refined product sales in Naira must not lead us back to outdated practices,” the President stated, underscoring that while adjustments in costs and revenue are possible, the sector must avoid reverting to old systems.

President Tinubu also called on key players, including the Nigerian National Petroleum Corporation Ltd and Dangote Refinery, to prioritize economic growth and improve the standard of living for Nigerians. He encouraged stakeholders to focus on local production of petroleum products to reduce import reliance, allowing foreign exchange resources to be channeled into developing other critical sectors.

To support the Naira-based pricing, Tinubu suggested that stakeholders work with Afreximbank as a settlement bank, with the financial institution already engaged as an advisor on this policy.

“The market should drive our strategy,” Tinubu asserted. “Allowing the market to dictate profit and loss will enable independent marketers and government stakeholders to collaborate effectively.”

Acknowledging Dangote’s pioneering efforts, the President urged the committee to further encourage such initiatives, aiming for energy security and stability for the long term.

Finance Minister Wale Edun affirmed that the administration’s shift to Naira-based crude sales is a firm decision, adding that the government will not influence the oil sector’s exchange rates.

Aliko Dangote reported that the Dangote Refinery currently holds over 500 million liters of fuel in reserve after supplying 400 million liters to the Nigerian market. He expressed willingness to collaborate with NNPC refineries to meet Nigeria’s demand for approximately 32 million liters of petrol daily.

Zach Adedeji, Chairman of the Federal Inland Revenue Service and head of the technical committee, noted that ending refined product imports is achievable once domestic production meets demand, with a vision to position Nigeria as a hub for refined product exports.

Other attendees included Afrexim Bank President Prof. Benedict Oramah, Budget and National Planning Minister Sen. Abubakar Atiku Bagudu, NNPC Ltd Group Managing Director Mele Kyari, the President’s Energy Advisor Olu Verheijen, and top officials from NIMASA, the Nigerian Ports Authority, and regulatory agencies NMDPRA and Upstream Regulator.

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