- He commended the efforts of the implementation committee and various stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced on Tuesday that Nigeria’s initiative to sell crude oil to local refiners, who in turn sell petroleum products in Naira, is yielding encouraging results.
Speaking at a meeting with President Bola Tinubu, Edun highlighted that this initiative, championed by Tinubu, has facilitated market pricing of petroleum products and foreign exchange, fostering an environment conducive to industrial development.
“This initiative, which was initiated by Mr. President, is made possible also by the courageous and bold investment of the Dangote Group in a local refinery with a capacity of 650,000 barrels per day,” Edun stated.
He commended the efforts of the implementation committee and various stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPC), among others. Edun affirmed that these collaborations are crucial to the successful execution of the initiative, which is currently underway.
The Minister noted that the establishment of market pricing for petroleum products has also enabled the NNPC to enhance its financial position, thereby providing additional funding for the federal government. This funding is essential for fulfilling obligations related to salary payments, social services, and key infrastructure development.
Edun expressed optimism about the future, stating, “We can now see a clear path to industrial development for modernisation of the Nigerian economy, as key prices are aligned to encourage private sector investment.” He acknowledged that while the economy is still in its early stages of industrialisation, significant progress is being made.
The meeting reviewed the initiative’s progress and discussed overcoming initial challenges associated with selling crude oil in Naira to domestic refiners. Edun mentioned that AfreximBank participated in the discussions, playing a vital role as an intermediary to facilitate transactions between crude oil sellers and buyers, regardless of market volatility.
As Nigeria aims to transform its economic landscape through this initiative, the focus remains on sustaining momentum and addressing any challenges that arise during implementation.
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