FG inaugurates committee to Implement naira-based crude oil sales to local refineries

Wale Edun, Nigeria’s Minister of Finance, has inaugurated a technical subcommittee to implement the Federal Executive Council’s directive for selling crude oil to local refineries in naira.

The initiative, approved on July 29, aims to boost Nigeria’s refining capacity and drive economic growth.

The committee, comprising key stakeholders from the Ministry of Finance, NNPCL, Central Bank, and other institutions, is tasked with creating a framework for the naira-based crude sales.

Edun emphasized that this strategy would position Nigeria as a refining hub, reduce reliance on crude oil exports, and enhance local expertise in the energy sector.

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According to a statement on Thursday by Mohammed Manga, the ministry’s director of information and public relations, the initiative is aimed at boosting Nigeria’s refining capacity and promoting economic growth and development.

On July 29, the federal executive council (FEC) approved a proposal by President Bola Tinubu, directing the Nigerian National Petroleum Company (NNPCL) Limited to sell crude oil to the Dangote refinery and other refineries in naira.

The finance ministry said the inauguration took place after a stakeholders’ meeting where government officials and representatives of local refineries, including the Dangote refinery, gathered to discuss the implementation of the directive.

“The committee, which includes Lydia Jafiya, the permanent secretary of the ministry of finance; Zacch Adedeji, executive chairman of the Federal Inland Revenue Service (FIRS), as well as representatives from the NNPCL, Central Bank of Nigeria (CBN), Afrexim Bank, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has the critical role of crafting a robust template that will ensure the successful implementation of the initiative,” the statement reads.

“With the inauguration of the technical sub-committee, under the leadership of HM Edun, Nigeria is poised to witness a transformative shift in its energy landscape, especially with the task on the committee to craft a robust framework for naira-based crude sales, paving the way for a self-reliant and globally competitive energy sector.

“As the nation embarks on this strategic journey, the ultimate goal of boosting economic growth, reducing poverty, and enhancing refining capacity is within reach.

“Thus, the committee’s diligent work will be instrumental in unlocking Nigeria’s full potential, and their contributions will be pivotal in shaping a brighter future for generations to come.”

In his remarks, Edun said the initiative is part of a broader strategy to position Nigeria as a refining hub, which will significantly boost the economy by reducing reliance on crude oil exports and fostering local expertise in the energy sector.

The minister commended the committee members for their dedication and anticipated contributions, urging them to work diligently to meet the expectations set by the presidential directive.

He reiterated that the ultimate goal is to transform Nigeria’s energy sector into “one that is self-reliant and globally competitive”.