Nigeria officially commences crude oil sales in Naira
Nigeria has officially commenced the sale of crude oil and refined petroleum products in naira, according to an announcement by the Federal Government.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, stated on Saturday that the sale began on October 1, in line with a directive from the Federal Executive Council (FEC). This information was disclosed in a statement by Mohammed Manga, the Director of Information and Public Relations in the Ministry of Finance.
“Following a meeting of the Implementation Committee, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira initiative, the commencement of this strategic initiative was affirmed by key stakeholders,” the statement read.
The meeting included prominent figures such as the Honourable Minister of State for Petroleum, the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), representatives from the Dangote Group, and management from the Nigerian National Petroleum Company (NNPC).
Manga emphasized that this initiative represents a bold step by the President Bola Tinubu-led administration, expected to have a lasting impact on Nigeria’s economy by enhancing growth, stability, and self-sufficiency. He added that the country is navigating the complexities of global markets, and this strategic move positions Nigeria for future success.
The decision to sell crude oil to Dangote Petroleum Refinery and other refineries in naira comes approximately nine weeks after the FEC approved President Tinubu’s proposal. The government stated that this policy aims to stabilize pump prices, potentially resulting in lower and more predictable fuel costs for consumers.
Conducting transactions in naira, rather than dollars, is expected to ease pressure on foreign exchange reserves, leading to a stabilisation of the dollar-naira exchange rate and control over inflation. Additionally, this approach aims to enhance local refining capacity, thereby reducing dependence on imported fuel and saving billions of dollars that can be reinvested into other sectors of the economy.
The government’s initiative is also expected to bolster local refining capacity, enhancing Nigeria’s energy security and ensuring a more reliable and self-sufficient fuel supply.
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