Naira-Based Crude Sales Propel Nigeria’s Economy Towards Industrialization – Wale Edun

Written by on 30 October 2024

Naira-Based Crude Sales Propel Nigeria's Economy Towards Industrialization – Edun

Naira-Based Crude Sales Propel Nigeria’s Economy Towards Industrialization – Edun

Naira-Based Crude Sales Drive Nigeria’s Path to Industrialisation – Edun

Nigeria’s Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced on Tuesday that selling crude oil in naira to local refiners is propelling Nigeria towards industrialisation and economic modernisation. Speaking after a meeting with President Bola Tinubu at the Presidential Villa, Edun explained that this bold initiative aligns with the administration’s vision for sustainable economic growth.

Edun, who heads the initiative’s implementation committee, noted that while more progress is necessary, the move has laid a strong foundation for industrial development and attracted private sector investment. By enabling local refiners to purchase crude in naira and sell refined products in naira, the government ensures price stability and encourages private sector growth across industries, including chemicals, construction, and textiles.

The initiative, fully backed by the Federal Executive Council (FEC), signals a strategic shift to market-driven pricing in the petroleum sector. According to Edun, this transition not only strengthens the financial position of the Nigerian National Petroleum Corporation Limited (NNPCL) but also improves funding for government services and infrastructure, creating a ripple effect of economic benefits.

President Tinubu’s administration is committed to clearing implementation hurdles, Edun said. AfreximBank, serving as a financial adviser, will facilitate the transactions between crude sellers and buyers to ensure smooth operations. This endeavour is supported by a robust regulatory network, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NIMASA, NNPCL, and the Navy.

Alhaji Aliko Dangote, Chairman of Dangote Refinery and Petrochemical Company, noted that the NNPCL’s crude supply enables his refinery to meet domestic demand across sectors, including LPG, aviation fuel, and plastics. As the refinery scales to full capacity at 650,000 barrels per day, and as other refineries resume operations, Nigeria is poised to become a significant exporter of petroleum products, Dangote said.

President Tinubu reiterated his commitment to supporting domestic industries, attracting more investment, and creating a dynamic environment for local refineries.


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