Abuja, Aug. 2024 – The Tinubu Stakeholders Forum (TSF) has expressed its backing for the recent directive by the Federal Executive Council (FEC) for direct sale of crude to Dangote Refinery and other domestic refineries in naira.
The TSF gave its support to the new directive in a statement signed by its Chairman Ahmad Sajoh and Secretary Afolabi Josiah, saying that the move would address the concerns of Nigerians on supply and cost of petroleum products.
The statement reads: “It is for us a strategic initiative and a significant milestone aimed at boosting the nation’s economy.
“By denominating crude oil sales to local refineries in Naira, the policy is bound to reduce the pressure on Nigeria’s foreign exchange reserves.
“The anticipated savings of $7.32 billion annually from this new deal will alleviate the strain on foreign currency liquidity, offering a substantial economic reprieve.
“The directive aligns with TSF’s vision of engendering economic stability and growth. It will help to stabilise petroleum product prices through fixed exchange rate sales. This move is also expected to mitigate inflationary pressures on transportation and food prices.
“As a result, Nigerians may experience a reduction in current fuel prices, which will lower transportation costs and reduce the cost of goods, thereby positively impacting household budgets across the country.
“It is also bound to have a positive effect on the matter of economy by stabilising the dollar/naira exchange rate aside from enhancing economic predictability and market stability.
“The commitment of NNPCL to supply four crude oil cargoes monthly to the Dangote Refinery and the facilitation of additional supplies from international traders highlight a robust framework designed to sustain and expand local refining capabilities.
“This is a major pro-business gesture to local refineries to increase their production capacity while ensuring a more resilient and self-sufficient petroleum sector.
“So, having considered all these, we have every reason to acknowledge the foresight of the Federal Government in not only resolving disputes between NNPC Ltd and local refineries but also in encouraging increased production capacity.”
TSF said that it remained committed to supporting policies that drive Nigeria’s economic development and enhance the well-being of its people. (GBN)
