Analyst reveals why FG's naira-for-crude policy is a game-changer

• A Nigerian taxation analyst, Aderonke Atoyebi, has lauded the Nigerian government’s naira-for-crude policy
• She described the policy, which mandates section lipid firms to merchantability crude lipid successful section currency to refineries, arsenic a game-changer
• Atoyebi said the argumentation is 1 of the smartest and astir realistic steps to fixing Nigeria’s lipid and state sector

A caller argumentation that mandates section refineries to wage for home crude lipid successful naira has been described arsenic “one of the smartest and astir realistic steps” to hole Nigeria’s lipid and state sector, according to Arabinrin Aderonke Atoyebi, a taxation expert and adjutant to the Executive Chairman of the Federal Inland Revenue Service (FIRS).

In a elaborate opinion published recently, Atoyebi praised the naira-for-crude initiative, describing it arsenic a landmark betterment that could reverse decades of dependence connected imported petroleum products and excessive overseas speech exposure.

President Bola Tinubu's authorities introduces naira-for-crude policy Credit: State House
Source: Getty Images

The caller argumentation saves scarce forex

She said:

“For decades, we watched arsenic our crude lipid near Nigerian shores lone to instrumentality arsenic costly imported fuel,” she wrote. “We mislaid worth and billions of dollars successful overseas speech each year. That rhythm had to end.”

The national government’s policy, aimed astatine bolstering section refining and conserving overseas reserves, was the absorption of a caller gathering of the Technical Sub-Committee connected Domestic Crude Sales successful Naira (ICONS). 

The high-level meeting, chaired by FIRS main Dr Zacch Adedeji, brought unneurotic elder stakeholders, including Finance Minister Wale Edun, the Central Bank of Nigeria (CBN), the Nigerian National Petroleum Company Limited (NNPC), Dangote Refinery, and respective cardinal regulatory bodies.

48 cardinal barrels supplied to section refineries

According to Atoyebi, the results truthful acold are encouraging. “More than 48 cardinal barrels of crude lipid person been supplied to section refineries and paid for successful naira,” she revealed. “Monthly proviso schedules are present successful use, helping refineries program amended and debar disruptions.”

She added that a One-Stop Shop process introduced to streamline approvals is helping to amended regulatory clarity and stakeholder efficiency.

“This is however betterment should work: with regulators and operators facing each other, not avoiding 1 another,” Atoyebi noted. “For once, the soundlessness betwixt agencies is being filled with coordination.”

Industry observers spot the engagement of Dangote Refinery—a multibillion-dollar installation susceptible of refining 650,000 barrels per day—as a large milestone. Atoyebi agreed, stating that its aboriginal adoption of the argumentation “provides an aboriginal awesome that the argumentation tin enactment astatine scale.”

The naira-for-crude model, she argued, represents much than a fiscal arrangement. “It is simply a measurement toward gathering an economy that focuses connected section production, unchangeable systems, and amended opportunities for the radical of our large nation.”

The argumentation shows synergy

Linking the argumentation to President Bola Tinubu’s Renewed Hope agenda, Atoyebi said the inaugural exemplifies what is imaginable erstwhile authorities and manufacture collaborate.

“The naira-for-crude argumentation is not conscionable a alteration successful however lipid is paid for. It shows that authorities and manufacture can enactment unneurotic to lick problems, Atoyebi revealed.

Dangote Refinery and different section refineries received 48 cardinal barrels of crude nether the policy. Credit: Bloomberg/Contributor
Source: UGC

With section refineries present experiencing much unchangeable crude supplies, she concluded, Nigeria is yet charting a way distant from petroleum import dependency and toward job-creating home worth addition.

“This is not conscionable astir money, “it’s astir strengthening our quality to refine lipid present astatine location and keeping much of our resources wrong our economy,” she stated.

FG clarifies naira-for-crude policy

Legit.ng earlier reported that the Chairman of the Technical Sub-Committee, Zacch Adedeji, said the naira-based crude lipid proviso statement with section refineries has not been discontinued.

Adedeji dismissed reports that the argumentation has been discontinued, forcing the home refineries to trust solely connected planetary crude purchases.

He said the reports bash not bespeak the realities of the ongoing enactment nether the Federal Executive Council Initiative connected Domestic Sales of Crude Oil and Refined Products successful Naira.

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Source: Legit.ng