ABUJA, Nigeria (VOICE OF NAIJA)-President Bola Tinubu’s naira-for-crude policy has safeguarded Nigeria’s energy security amid the ongoing Middle-East crisis, a presidential aide has stated.
Mr Temitope Ajayi, Senior Special Assistant on Media and Publicity to the President, made this claim in an article released on Wednesday in Abuja.
The piece, titled “Middle-East Crisis: How Tinubu’s Policy of Naira-for-Crude Guarantees Supply Security in Nigeria,” highlights the strategic impact of the policy since its implementation.
Ajayi explained that the President demonstrated foresight in July 2024 by approving the use of the naira as payment for crude oil supplied by NNPC Limited to local refiners.
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He observed that since the initiative’s launch on Oct. 1, 2024, Nigeria has achieved a strategic breakthrough despite global economic disruptions caused by the Middle-East conflict.
According to Ajayi, the technical committee supervising the policy has established a robust framework to maintain supply security, stabilise the economy, and protect Nigeria’s energy future.
The committee includes the Minister of Finance, Wale Edun, and the Executive Chairman of the Nigerian Revenue Service (NRS), Zacch Adedeji.
Ajayi noted that the ongoing conflict involving the United States, Israel, and Iran has entered its sixth week, triggering significant global economic disturbances.
He highlighted that Iran’s closure of the Strait of Hormuz, a major international energy route, disrupted over 20 per cent of global oil and gas flows.
“This disruption has sent shockwaves through global energy markets, leading to rising prices of petroleum products across continents,” he said.
Ajayi stated that countries across Europe, Asia, Africa, and the U.S. are facing severe energy shortages, escalating fuel costs, and increasing economic pressure.
He listed emergency measures being implemented worldwide, including reduced workdays, remote working, early school closures, and fuel consumption restrictions.
Despite rising global prices, Nigeria has avoided domestic fuel scarcity due to increased local refining capacity, Ajayi added.
He credited the Dangote Refinery with playing a critical role in shielding Nigeria from the worst effects of the global supply crisis.
“The refinery has met Nigeria’s refined product needs, ensuring availability without queues, even as other countries grapple with shortages,” he said.
Ajayi noted that the refinery prioritised domestic supply even when international markets offered more profitable opportunities.
He added that although global crude prices have risen, the refinery has taken steps to cushion the impact on Nigerians.
“For instance, despite rising crude prices, petrol prices were reduced by N75 per litre, reflecting the benefits of local refining,” he explained.
The refinery has continued operations despite paying higher premiums for crude oil, demonstrating its commitment to national energy security, Ajayi said.
He further highlighted that the initiative has eliminated persistent fuel queues and cut demurrage costs previously incurred by storing offshore fuel reserves.
Nigeria has also become a key supplier of refined petroleum products to other African nations amid the global supply crunch.
“In March alone, the refinery exported nearly 500,000 tonnes of refined products across Africa, generating export earnings,” Ajayi stated.
The presidential aide emphasised that the development underscores the importance of local production, industrialisation, and energy self-sufficiency for long-term economic stability.
He described the Dangote Refinery as a cornerstone of Nigeria’s energy sovereignty and a catalyst for sustainable growth.
According to Ajayi, local refining not only preserves foreign exchange and creates jobs but also shields the economy from global volatility and geopolitical risks.
(NAN)