CNG Welcomes FG Decision to Sell Crude Oil in Naira to Domestic Refineries, says its Position Vindicated

Folalumi Alaran in Abuja

The Coalition of Northern Groups (CNG), warmly welcomes the Federal Government’s decision to sell crude oil in naira to domestic refineries as against earlier arrangement of payment in the US dollar.

A statement signed, National Coordinator, CNG
Comrade Jamilu Aliyu Charanchi views the decision as a positive step towards strengthening Nigeria’s currency, economy and ensuring self-sufficiency in oil production.

Recall that on April 20, 2024, the CNG, in a statement by its national coordinator, Comrade Jamilu Aliyu Charanchi, had called on the Federal Government to accept naira in lieu of the US dollar for the purpose of purchasing crude oil from domestic refineries.

The statement reads in part “The CNG believes that selling crude oil to the Dangote Refinery in naira will not only help reduce price of fuel in the country but will also be immensely beneficial to the Nigeria economy as a practical solution that will have a positive impact on the lives of millions of Nigerians.”

Therefore, the CNG is certain that this approach will enhance transparency, boost local capacity, and contribute to the growth of our refining sector, support our currency and make fuel consistently available at affordable prices.

The CNG’s advocacy, which had over the last few months been in the news, has been vindicated by the Federal Executive Council’s instruction to the Nigerian National Petroleum Company (NNPC) Ltd to sell crude oil in Naira for the purpose of domestic consumption.

We believe crude oil transactions in naira in Nigeria will make the PMS permanently available and eliminate artificial scarcity that fuel importers have been using to milk Nigerians dry.

Today, the CNG is pleased to see that President Bola Tinubu has taken decisive action in this direction. We view this move as a win-win for Nigeria, Nigerians and the refineries.

We commend the President for taking this bold decision and we urge him to recommit more energy to addressing major obstacles that strangle revival of our refineries and by extension stunting our economy through fuel importation.

The CNG reiterates its call to the Federal Government to make genuine efforts to revamp state-owned refineries in Kaduna, Port Harcourt and Warri to deepen competition among domestic refiners to enable Nigerians access quality and affordable fuel.

By taking further decisions to resuscitate Government refineries, the President’s resolve to provide a lasting solution to Nigeria’s paradox of oil-producing but oil-importing country will be permanently addressed.

The only way to address the fuel crisis in Nigeria is to refine fuel locally to completely remove the use of dollars in the process.

The refineries must also be revitalized and upgraded in order to meet our local needs to exterminate the import-dependent fuel crisis that is being orchestrated by the importing cartel.

We urge the Federal Government to sustain this momentum and continue implementing policies that prioritize Nigerian interests.

In the same vein, the CNG appeals to domestic refineries to take advantage of this opportunity to produce high-quality petroleum products that are cost effective and make it reasonably affordable to Nigerians devoid of exploitation.

The CNG strongly suggests to Mr. President that activities at the Kolmani oil well in Bauchi-Gombe Axis must continue swiftly to consolidate on the significant progress already made. The enthusiasm and the resources committed to the work must be pursued rigorously in the interest of the country.

The CNG emphasizes that having our crude oil produced in the country is an important component of our national security and the economy which should be pursued and guarded to protect national interests for a strong and prosperous Nigeria.