FG Inaugurates Committee to Develop Naira-Based Crude Oil Sales Framework
By Patience Ikpeme
The Federal Government has inaugurated a Technical Sub-Committee responsible for crafting a framework for the sale of crude oil to local refineries in Naira.
This initiative aims to enhance Nigeria’s refining capacity, thereby promoting economic growth and reducing the country’s dependency on crude oil exports.
The inauguration took place in Abuja, with the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, presiding over the event. The initiative is in alignment with a presidential directive intended to revolutionize the energy sector by fostering local expertise and decreasing the nation’s reliance on exporting crude oil.
The Technical Sub-Committee comprises key government officials and industry stakeholders, including the Permanent Secretary of the Federal Ministry of Finance, Mrs. Lydia Shehu Jafiya, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, representatives from the Nigerian National Petroleum Corporation Limited (NNPCL), Central Bank of Nigeria (CBN), Afrexim Bank, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This diverse group is tasked with developing a robust and effective template for implementing the Naira-based crude sales initiative.
During the inauguration, Mr. Edun highlighted that this initiative is part of a broader strategy to position Nigeria as a refining hub in Africa. By focusing on local refining, the government intends to significantly reduce the outflow of crude oil exports, retain more value within the country, and build local capacity in the energy sector.
Mr. Edun emphasized the importance of the committee’s work, noting that the successful implementation of this framework could transform Nigeria’s energy sector into one that is self-reliant and globally competitive. The shift from dollar-based crude oil sales to a Naira-based model is expected to stabilize the local currency, reduce the demand for foreign exchange, and keep more economic value within Nigeria’s borders.
The committee’s formation follows a stakeholders meeting where government officials and representatives from key local refineries, including the Dangote Refinery, gathered to discuss the strategic directive’s implementation. This collaboration underscores the government’s commitment to ensuring that all key players in the energy sector are aligned with the new vision.
The Minister commended the committee members for their dedication and expressed confidence in their ability to meet the high expectations set by the presidential directive. He urged the committee to work diligently to develop a framework that would not only meet the current needs but also anticipate future challenges in the energy sector.
The government’s broader vision includes transforming Nigeria into a refining hub, reducing poverty, and boosting economic growth. By shifting to Naira-based crude sales, Nigeria aims to retain more of the value derived from its natural resources, create jobs, and develop local expertise, all of which are critical for long-term sustainable growth.
