By Ngozi Nwankwo
The Executive Secretary Nigerian Christian Pilgrim Commission NCPC, Bishop Stephen Adegbite has described the Federal Government’s recent directive to the Nigeria National Petroleum Company Ltd, NNPCL to sale crude oil to local Refineries in Naira as a welcome development.
Adegbite said it was a bold move to stabilise the economy and promote local refining.
He explained this presupposes that the NNPCL will sell crude oil to local Refineries including the Dangote Refinery in Naira.
The NCPC boss maintained that the implementation of the NNPCL/Local Refineries Crude oil and Premium Motor Spirit, PMS sale in Naira has enabled the creation of sufficient room for all interested market participants to participate in the purchase and sale of Petroleum Products.
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He said hat, “This policy change is aimed at conserving Foreign Exchange reserves, stimulate local refining activities and reduce Nigeria,s dependence on imported Petroleum Products.”
The Executive Secretary further outlined the benefits of this policy which include conservation of Foreign Exchange; by selling crude oil in Naira, Nigeria can reduce the outflow of dollars and strengthens its local currency.
He further said, “It will substantially reduce the pressure on the demand for Foreign Exchange. The policy will create a more conducive business environment for local Refineries, incentivizing increased investments and job creation, stabilization of crude oil prices as well as reduced import dependency.”
In order to achieve the expected outcome, the NCPC Executive Secretary advised that the Federal Government should establish a transparent and market- based Pricing mechanism for Naira – denominated crude oil sales.
“Adequate incentives and support should be provided to local Refineries to enhance their capacity and efficiency, while a robust monitoring and evaluation framework will also be implemented to assess the policy’s impact and make necessary adjustments,” he said.
Adegbite reiterated that the Federal Government’s decision to sell crude oil to local Refineries in Naira is a right step in the right direction, because it is indeed a strategic move to boost the economy and promote energy independence.
The NCPC boss expressed optimism that with meticulous implementation and effective oversight, this policy will certainly have a positive impact on the nation,s economic growth and development.