President Bola Tinubu says the oil sector will experience stability with the implementation of naira-for-crude transactions.
Tinubu spoke during a review meeting at the State House in
Abuja on Tuesday.
On October 5, the federal government officially announced
the commencement of the sale of crude oil and refined petroleum products in
naira.
Three weeks later, Dangote Petroleum Refinery received four
cargoes of crude oil from the Nigerian National Petroleum Company (NNPC)
Limited under the naira-for-crude sale agreement.
The president said using the naira was conceived to remove
the exchange rate hurdle.
“Whatever solution we proffer in crude oil and refined products
sales in naira should not take us back to our experience in the last 40 years,”
Tinubu said.
“There can be cost and revenue adjustment in the oil sector,
but the issue is that the government will not have to go back to the old way of
doing things.”
Tinubu also commended the implementation committee on the
crude oil and refined products sale in naira and asked the members to resolve
any teething problems.
He urged the various players in the oil sector, including
the NNPC and the Dangote refinery, to collaborate to improve the economy and
livelihood of Nigerians.
The president urged stakeholders to look inward and consider
supplying enough petrol and petroleum products for local consumption to stop
the persistent reliance on importation.
Tinubu said it would enable the channelling of foreign
exchange into the development of the real sector.
‘USE AFREXIMBANK TO RESOLVE NAIRA PRICING’
Tinubu also advised stakeholders to use the African
Export-Import Bank (Afreximbank), being the financial adviser on the deal, as a
settlement bank to resolve the naira pricing for crude and refined products.
“The market must determine what we are doing. Once you allow
the market to determine the profit and loss, independent marketers and the
government side can meet on the worksheet,” he said.
“I want the issues resolved without future waste of time.
“We can have energy
security, and the motivation for Alhaji Aliko Dangote will not be defeated. It
will be more predictable on a medium and long-term basis.”
At the meeting, Wale Edun, minister of finance and
coordinating minister of the economy, said the administration’s groundbreaking
steps to sell crude in naira would not be reversed.
He said the government would not be involved in determining
the rate of exchange for the oil sector.
Aliko Dangote, president and chairman of Dangote Group, told
Tinubu that Dangote refinery had more than 500 million litres of petrol in
reserve.
Dangote said the refinery could collaborate with the other
refineries managed by NNPC to meet an estimated 32 million litres of local
petrol needs.
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