Abuja, Nigeria – October 10, 2024
The Executive Secretary, Nigerian Christian Pilgrim Commission (NCPC), Bishop Stephen Adegbite, has described the Federal Government’s recent directive to the Nigerian National Petroleum Company Ltd (NNPCL) to sell crude oil to local refineries in Naira as a welcome development.
The NCPC boss said, “This is a bold move to stabilize the economy and promote local refining.” He explained that this presupposes that the NNPCL will sell crude oil to local refineries, including the Dangote Refinery, in Naira.
Interestingly, the NCPC boss maintained that the implementation of the NNPCL/Local Refineries Crude oil and Premium Motor Spirit (PMS) sale in Naira has enabled the creation of sufficient room for all interested market participants to participate in the purchase and sale of petroleum products.
He asserted that “this policy change is aimed at conserving Foreign Exchange reserves, stimulating local refining activities, and reducing Nigeria’s dependence on imported petroleum products.”
The Executive Secretary further outlined the benefits of this policy, which include:
– Conservation of Foreign Exchange: by selling crude oil in Naira, Nigeria can reduce the outflow of dollars and strengthen its local currency.
– Substantial reduction of pressure on the demand for Foreign Exchange.
– Creation of a more conducive business environment for local refineries, intensifying increased investments and job creation.
– Stabilization of crude oil prices.
– Reduced import dependency.
In order to achieve the expected outcome, the NCPC Executive Secretary advised that the Federal Government should:
– Establish a transparent and market-based pricing mechanism for Naira-denominated crude oil sales.
– Provide adequate incentives and support to local refineries to enhance their capacity and efficiency.
– Implement a robust monitoring and evaluation framework to assess the policy’s impact and make necessary adjustments.
Bishop Adegbite reiterated that the Federal Government’s decision to sell crude oil to local refineries in Naira is a right step in the right direction, because it is indeed a strategic move to boost the economy and promote energy independence.
The NCPC boss expressed optimism that with meticulous implementation and effective oversight, this policy will certainly have a positive impact on the nation’s economic growth and development.
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