In a move hailed as transformative, the Nigerian Senate has lauded President Bola Tinubu’s directive to sell crude oil to the Dangote Refinery in Naira, underscoring its potential to stabilize the economy and fortify the national currency.
On Tuesday, the Senate, through its Committee on Finance, expressed strong support for the decision, emphasizing the positive impact of selling crude oil to the 650,000 barrels per day Dangote Refinery in local currency. This endorsement came in a statement issued by the Committee’s Chairman, Senator Sani Musa.
Following a meeting presided over by President Tinubu, the Federal Executive Council (FEC) approved the sale of crude oil to indigenous refineries, including the Dangote Refinery, in Naira. Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, briefed newsmen at the State House in Abuja, highlighting that the President directed the Nigerian National Petroleum Company Limited (NNPC) to implement this directive immediately.
Adedeji explained that this policy aims to promote the sale of crude oil within local refineries and ensure NNPC transactions are conducted in local currency. He pointed out that Nigeria currently spends between 30% to 40% of its foreign exchange on importing petrol, with monthly expenditures around $660 million, totaling approximately $7.92 billion annually.
On Tuesday, the Senate’s Finance Committee praised President Tinubu for his visionary and impactful decision to approve Naira-based crude sales. “This strategic move is a significant milestone in our nation’s journey towards economic self-sufficiency and stability. By allowing transactions in our local currency, this policy not only strengthens the Naira but also reduces our dependency on foreign exchange,” the lawmakers stated.
The committee expressed optimism that this directive would enhance the efficiency of local refineries, boost domestic production, and ensure a more consistent and affordable supply of refined petroleum products for all Nigerians. The Finance panel also highlighted that this policy would empower the NNPC, Dangote Refinery, and other domestic producers to make business decisions that are more affordable, sustainable, and beneficial for the country.
“This initiative will likely lead to increased efficiency within our local refineries, boosting domestic production and ensuring a more consistent and affordable supply of refined petroleum products for all Nigerians,” the lawmakers concluded.
The Senate’s endorsement reflects broad political support for Tinubu’s economic strategy, which is expected to have far-reaching benefits for Nigeria’s economy and its people.
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