In a recent meeting with His Excellency Mr. President, Wale Edun, the Minister of Finance, provided an update on the implementation of the government’s initiative to sell crude oil to local refiners, who will then sell petroleum products in Naira to the Nigerian public. This initiative, fully endorsed by the Federal Executive Council, aims to bolster the local economy and foster industrial growth.
Edun highlighted the significant investment by the Dangote Group in a local refinery with a capacity of 650,000 barrels per day, which has been crucial for the initiative’s success. He noted that the implementation committee, in collaboration with various stakeholders—including regulatory bodies such as NNDPRA, NUPRC, NIMASA, NNPC, NPA, and the Navy—has been diligently working to ensure the initiative is effectively executed.
“This initiative has enabled market pricing for petroleum products and foreign exchange, setting the economy on a path toward industrialization,” Edun stated. He emphasized that the local refining of crude oil would provide essential raw materials for diverse sectors, including agriculture, chemicals, paints, and textiles, thereby creating jobs and stimulating economic growth.
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Additionally, the Minister pointed out that the market pricing of petroleum products has allowed the Nigerian National Petroleum Corporation (NNPC) to stabilize its financial position, ultimately benefiting federal, state, and local governments in meeting their financial obligations, including salaries and infrastructure development.
While acknowledging the early stages of implementation, Edun expressed optimism about the clear path towards modernizing the Nigerian economy. “All parties involved are committed to sustaining this vital effort, and we are determined to overcome any initial challenges,” he remarked.
The meeting also featured participation from Afriexim Bank, which will serve as a financial intermediary to facilitate transactions between crude sellers and buyers, despite the volatility of the foreign exchange market. Edun reaffirmed the government’s commitment to ramping up production and fostering a conducive environment for private sector investment.
As Nigeria takes significant steps towards economic modernization, Edun’s remarks underscore the administration’s resolve to ensure the successful realization of this groundbreaking initiative.
Dailytimes
