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Nigeria’s energy security has been guaranteed by President Bola Tinubu’s naira-for-crude program despite the ongoing Middle East turmoil, according to a presidential aide.
This was said in an essay published in Abuja on Wednesday by Mr. Temitope Ajayi, Senior Special Assistant on Media and Publicity to the President.
The article “Middle-East Crisis: How Tinubu’s Policy of Naira-for-Crude Guarantees Supply Security in Nigeria” emphasizes the strategic significance of the strategy since it was first implemented.
According to Ajayi, the President showed vision in July 2024 when he authorized the use of naira to pay local refiners for crude oil supplied by NNPC Limited.
He pointed out that despite worldwide 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 strategy has created a solid framework to maintain supply security, stabilize the economy, and protect Nigeria’s energy future.
Zacch Adedeji, the Executive Chairman of the Nigerian Revenue Service (NRS), and Wale Edun, the Minister of Finance, are members of the committee.
According to Ajayi, the battle between the US, Israel, and Iran has reached 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 significant global energy corridor.
“Petroleum product prices are rising across continents as a result of this disruption, which has sent shockwaves through global energy markets.”
According to Ajayi, nations in Europe, Asia, Africa, and the United States are facing acute energy shortages, escalating gasoline prices, and growing economic strain.
He enumerated emergency measures implemented worldwide, such as shortened workdays, remote employment, early school closures, and fuel consumption limitations.
He claims that Nigeria has avoided domestic fuel scarcity despite higher worldwide prices because of expanded local refining capacity.
He said that Nigeria has been 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 queues.”
Despite more profitable export prospects in the global market, he continued, the refinery gave priority to domestic supply.
Ajayi pointed out that the refinery had made measures 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, reflecting the benefits of local refining.”
He emphasized the refinery’s dedication to the country’s energy security by pointing out that it had kept running despite paying higher prices for crude oil.
According to Ajayi, the program has removed long-standing gasoline lines and decreased demurrage expenses that were previously associated with keeping offshore fuel reserves.
In the midst of the global supply crisis, he claimed Nigeria has also become a major supplier of refined petroleum products to other African nations.
“The refinery generated export earnings in March alone by exporting nearly 500,000 tonnes of refined products throughout Africa.”
According to the presidential assistant, the development highlighted how crucial local manufacturing, industrialization, and energy self-sufficiency are to long-term economic stability.
According to him, the Dangote Refinery is a key component of Nigeria’s energy independence and a driving force for long-term development.
He claims that local refining protects the economy from geopolitical risks and global instability in addition to generating jobs and preserving foreign exchange.
