According to a presidential aide, Nigeria’s energy security has been guaranteed by President Bola Tinubu’s naira-for-crude program notwithstanding the present Middle East crises.
In an article published in Abuja on Wednesday, Mr. Temitope Ajayi, the President’s Senior Special Assistant on Media and Publicity, made this claim.
The article, “Middle-East Crisis: How Tinubu’s Policy of Naira-for-Crude Guarantees Supply Security in Nigeria,” emphasizes the strategic significance of the program when it was first implemented.
According to Ajayi, the President showed vision in July 2024 when he authorized the payment of local refiners with naira for crude oil supplied by NNPC Limited.
He pointed out that despite the global economic unrest brought on by the Middle East crisis, Nigeria has achieved a strategic success since the initiative’s debut on October 1, 2024.
He claims that the technical group in charge of the policy has created a strong framework to maintain supply security, stabilize the economy, and protect Nigeria’s energy future.
Wale Edun, the Minister of Finance, and Zacch Adedeji, the Executive Chairman of the Nigerian Revenue Service (NRS), are members of the committee.
According to Ajayi, the battle between the US, Israel, and Iran is already in its sixth week and is causing significant disruptions to the world economy.
He pointed out that more than 20% of the world’s oil and gas flows have been affected by Iran’s closing of the Strait of Hormuz, a vital global energy corridor.
“Petroleum product prices have increased across continents as a result of this disruption, which has sent shockwaves through global energy markets.”
According to Ajayi, nations in the U.S., Europe, Asia, and Africa are facing serious energy shortages, growing gasoline prices, and increasing economic strain.
He enumerated emergency measures implemented worldwide, such as shorter workdays, remote employment, early school closures, and fuel consumption limitations.
He claims that because of enhanced local refining capacity, Nigeria has avoided domestic fuel scarcity despite rising worldwide prices.
He said that Nigeria was protected from the worst consequences of the world supply crisis by the Dangote Refinery.
“Even as other nations struggle with shortages, the refinery has satisfied Nigeria’s needs for refined products, guaranteeing availability without lines.”
Despite more profitable export options in the global market, he continued, the refinery gave priority to domestic supply.
Ajayi pointed out that the refinery had taken action to lessen the impact on Nigerians despite the rise in global crude prices.
“For example, petrol prices decreased by N75 per litre despite rising crude prices, demonstrating the advantages of local refining.”
He emphasized the refinery’s dedication to the country’s energy security by stating that it has kept up operations despite paying higher premiums for crude oil.
According to Ajayi, the program has removed long-standing fuel lines and decreased the demurrage expenses associated with keeping offshore fuel reserves.
In the midst of the worldwide supply shortage, he claimed Nigeria has also become a major supplier of refined petroleum products to other African nations.
“The refinery generated export earnings by exporting nearly 500,000 tonnes of refined products throughout Africa in March alone.”
The development highlighted the significance of local production, industrialization, and energy self-sufficiency for long-term economic stability, according to the presidential adviser.
According to him, the Dangote Refinery is a key component of Nigeria’s energy sovereignty and a driving force behind long-term development.
He claims that local refining protects the economy from geopolitical threats and global volatility in addition to generating jobs and preserving foreign exchange.
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