Why Naira-for-crude Policy Is Best For Nigeria’s Economy – Atoyebi

Technical assistant on Broadcast Media to the Govt Chairman of the Federal Inland Income Service (FIRS), Arabinrin Aderonke Atoyebi, has emphasised that the federal authorities’s Naira-for-Crude coverage is a strategic transfer to bolster Nigeria’s financial progress.

Atoyebi highlighted that earlier than the elimination of gas subsidies below President Bola Ahmed Tinubu’s administration, Nigeria grappled with unsustainable debt ranges. The subsidy regime, she famous, disproportionately benefited the rich and sure political figures, whereas the final populace bore the brunt. This method compelled the nation to import petroleum merchandise that it may in any other case produce domestically.

In response to those challenges, the federal government launched the Naira-for-Crude coverage. This initiative goals to scale back Nigeria’s dependence on imported refined petroleum merchandise, alleviate international trade pressures, and optimise native refining capacities. The Federal Govt Council permitted the coverage that mandates the sale of crude oil and refined petroleum merchandise in Naira for home consumption, strengthening native manufacturing and supporting broader financial reforms post-subsidy elimination.

“It’s about making Nigeria act like a rustic that owns oil,” Atoyebi defined. “Promote our crude oil to native refineries in Naira, refine it, and promote the merchandise inside Nigeria, nonetheless in Naira. No extra scrambling for {dollars} to commerce our sources at residence.”

The coverage formally commenced on October 1, 2024, with the Nigerian Nationwide Petroleum Firm Restricted (NNPCL) supplying roughly 385,000 barrels per day of crude oil to the Dangote Refinery, with funds made in Naira.

Atoyebi famous that the Implementation Committee, chaired by Dr. Zacch Adedeji, govt chairman of FIRS, oversees the coverage’s rollout. The coverage is anchored on 4 principal ideas: crude oil allocation to native refineries, transactions performed in Naira, the Central Financial institution of Nigeria setting a reference trade price, and the Nigerian Ports Authority overseeing the method by a One-Cease Store for clearances and levies.

She emphasised the oil sector’s pervasive affect on Nigeria’s financial system, stating, “We can’t focus on infrastructure, healthcare, schooling, and even pay salaries in lots of states with out counting on oil income.”

The Technical Sub-Committee ensures adherence to those ideas whereas aligning the coverage with nationwide targets similar to lowering reliance on international foreign money, attaining self-sufficiency, and sustaining market stability.

“The Naira-for-Crude coverage is designed to ease the burden on our financial system whereas strengthening related sectors,” Atoyebi acknowledged. “It reduces stress on the greenback, helps us save our international reserves, and paves the way in which for a extra steady monetary system.”

For stakeholders like refineries, entrepreneurs, and authorities our bodies, the coverage simplifies enterprise operations, facilitates transactions, and encourages funding. For the typical Nigerian, the aim is to make sure gas availability, cut back reliance on imports, and safe vitality wants successfully.

The coverage additionally fosters a conducive enterprise atmosphere, diminishes monopoly energy, and ensures aggressive pump pricing, offering residents with a way of inclusion and selection.

“Naira-for-Crude makes lots of sense,” Atoyebi concluded. “We’ve been doing issues the onerous method for too lengthy, shopping for again what we produce and spending {dollars} we don’t have. This new coverage signifies Nigeria taking management and fixing points from inside. It’s not simply coverage; it’s widespread sense.”

She affirmed that the coverage serves as a blueprint for the long run, altering how Nigeria manages its sources and taking again management. “It’s time for Nigeria to transition from merely managing to thriving. We’re making vital strides, and there’s no turning again.”