The Nigerian Senate has expressed optimism that the decision to sell crude oil to the Dangote Refinery and other local refineries in Naira will bolster the value of the Nigerian currency and reduce dependency on foreign exchange.
This support follows the Federal Executive Council’s (FEC) approval of a proposal by President Bola Tinubu to facilitate such transactions, as announced by the Chairman of the Senate Committee on Finance, Senator Sani Musa on Tuesday.
During a briefing, Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), emphasized that the directive would immediately be implemented, allowing the sale of crude oil to local refineries, including the Dangote Refinery, in Naira.
The initiative aims to stabilize fuel pump prices and manage the exchange rate between the dollar and the naira.
Adedeji highlighted that Nigeria currently allocates between 30% and 40% of its foreign exchange for petrol imports, costing roughly $660 million monthly, or $7.92 billion annually.
The Senate committee praised President Tinubu’s decision, noting it as a forward-thinking move towards economic self-sufficiency.
“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.
“This 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 said.
The Senate panel expressed hope that this move would encourage NNPC, Dangote Refinery, and other domestic producers to make more affordable, sustainable, and qualitative production decisions.
They commended the President’s visionary leadership and dedication to national prosperity, anticipating significant positive impacts on the country’s economic landscape.
Additionally, the Arewa Think Tank (ATT) and other Civil Society Organisations (CSOs) applauded the FEC’s approval, which they see as a response to their concerns about alleged sabotage of the Dangote Refinery by NNPC.
The groups noted that the directive aims to stabilize fuel pump prices and the dollar-Naira exchange rate, using the Dangote Refinery as a pilot for selling crude oil in Naira.
