In a significant move to address Nigeria’s persistent fuel crisis, President Bola Ahmed Tinubu has called on local refineries to prioritize supplying petrol for domestic consumption.
This appeal comes as the country continues to grapple with its heavy reliance on imported petroleum products.
During a review meeting on Tuesday at the State House in Abuja, President Tinubu emphasized the need for Nigeria-based refineries to look inward.
He stated that increasing local production would not only reduce import dependency but also channel foreign exchange into the development of Nigeria’s real sector.
“We need to stop relying on imports,” Tinubu said. “Our local refineries must be able to meet our demands for petrol and other petroleum products.”
The president’s statement highlights a pressing issue for Nigeria, which has faced significant challenges in its oil sector over the years.
For decades, Nigeria has struggled with fuel shortages, leading to long queues at petrol stations and skyrocketing prices.
The president noted that the naira-based sales of crude oil and refined products would help eliminate the barriers posed by fluctuating exchange rates.
“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,” he warned.
Tinubu’s administration has been making efforts to stabilize the oil market and ensure that Nigerians have reliable access to fuel.
During the meeting, he addressed the Implementation Committee on the Naira-based sales of crude oil and refined products.
He emphasized that while there could be adjustments in costs and revenues within the oil sector, the government must not revert to outdated practices.
“The market must determine what we are doing,” he said. “Once you allow the market to determine profit and loss, independent marketers and the government can meet on the worksheet.”
The president urged stakeholders to utilize Afreximbank as a settlement bank to facilitate naira pricing for crude and refined products.
Afreximbank is already involved as the financial adviser for these initiatives.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, reinforced the president’s message.
He stated that the administration’s groundbreaking move to sell crude in naira would not be reversed.
“We will not be involved in determining the exchange rate for the oil sector,” Edun affirmed.
This policy aims to create a more transparent and efficient oil market in Nigeria.
The fuel crisis has been a major concern for many Nigerians, affecting daily life and the economy.
Long lines at petrol stations have become a common sight, frustrating citizens and causing economic disruptions.
The reliance on imported fuel has drained Nigeria’s foreign reserves and created vulnerabilities in the economy.
In response to these challenges, the President and Chief Executive of Dangote Group, Aliko Dangote, assured President Tinubu that his refinery is ready to play a crucial role.
He reported that the Dangote refinery currently holds more than 500 million litres of fuel in reserve after supplying 400 million litres to the economy.
“Our refinery can collaborate with other refineries managed by NNPC Ltd to meet the local petrol needs,” Dangote stated confidently.
He estimated that the collaboration could address about 32 million litres of petrol required locally.
This partnership could be a significant step toward achieving fuel self-sufficiency in Nigeria.
Tinubu’s call to action is timely, as many Nigerians are hopeful for solutions to the ongoing fuel crisis.
The challenges facing the oil sector are deeply rooted, stemming from years of mismanagement and infrastructural decay.
Investments in local refining capabilities have been slow, and previous efforts have not yielded the desired results.
Nigerians are now looking to the government for concrete actions to ensure that the country can produce enough fuel for its needs.
The idea of using naira for crude oil transactions is a novel approach aimed at boosting local production.
This strategy could potentially lead to reduced costs and greater stability in the oil market.
President Tinubu’s emphasis on collaboration among refineries is also a crucial element of this plan.
It highlights the importance of unity in the oil sector to meet national demands effectively.
Local production of fuel not only addresses immediate needs but also contributes to job creation and economic growth.
