What President Tinubu And Dangote Discussed About Addressing Nigeria’s Petrol Crisis

What President Tinubu And Dangote Discussed About Addressing Nigeria’s Petrol CrisisOn Tuesday, President Bola Tinubu met with the Implementation Committee for Naira-based crude oil sales at the Aso Rock Villa in Abuja. The meeting included notable figures such as Aliko Dangote, owner of Dangote Refinery, and Finance Minister Wale Edun, alongside other government officials and stakeholders.....KINDLY READ THE FULL STORY HERE▶

During the discussions, President Tinubu urged the committee to address any initial challenges related to the Naira-based sales policy. He emphasized that Nigeria must not revert to previous practices in the oil sector.

According to presidential spokesperson Bayo Onanuga, Tinubu highlighted that adopting the Naira for crude oil sales aims to eliminate exchange rate barriers. He stated, “Any solutions for crude oil and refined product sales in Naira must avoid the pitfalls of the last 40 years,” asserting that while adjustments in costs and revenues may occur, the government will not return to old methods.

Tinubu called on stakeholders in the oil sector, including the Nigerian National Petroleum Corporation Ltd and Dangote Refinery, to focus on enhancing the economy and improving the livelihoods of Nigerians. He urged them to ensure sufficient local supply of petrol and petroleum products to reduce dependence on imports, thereby channeling foreign exchange into developing the real sector.

The President recommended using Afreximbank as a settlement bank for Naira pricing in crude and refined product transactions, noting their role as financial advisers.

“The market must dictate our actions,” he added. “Allowing the market to set profit and loss will facilitate collaboration between independent marketers and the government. I want these issues resolved without wasting time.”

Tinubu also encouraged support for Dangote’s refinery, stating, “We can achieve energy security, and we must ensure Alhaji Aliko Dangote’s motivation is sustained for long-term predictability.”

Wale Edun, the Finance Minister, assured that the administration’s initiative to sell crude in Naira would not be reversed and that the government would not set exchange rates for the oil sector.

Dangote reported that his refinery currently holds over 500 million liters of fuel in reserve after supplying 400 million liters to the market, expressing readiness to collaborate with NNPC Ltd to meet the nation’s petrol requirements.

Zach Adedeji, Chairman of the Federal Inland Revenue Service and head of the technical committee, noted that importing refined products should cease once domestic production meets demand. He stated, “The vision of Mr. President is to make Nigeria a hub for refined products for global export.”

Other participants included Prof. Benedict Oramah, President of Afrexim Bank, Sen. Abubakar Atiku Bagudu, Minister of Budget and National Planning, and Mele Kyari, Group Managing Director of NNPC Limited, along with various energy sector leaders.

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