The Nigerian federal government has officially commenced selling crude oil and refined petroleum products in naira, marking a significant shift in the country’s energy market.
On Saturday, October 6, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, revealed that sales began on October 1, 2024, following a directive from the Federal Executive Council (FEC).
Edun explained that the decision was further reinforced during a post-commencement review meeting held by the Implementation Committee, which was set up to oversee the initiative’s rollout. The meeting included key figures such as the Minister of State for Petroleum, the President’s Special Advisers on Revenue and Energy, as well as senior officials from the Nigerian National Petroleum Company (NNPC) and the Dangote Group.
“This strategic move by President Bola Tinubu’s administration is expected to drive long-term economic growth, enhance stability, and promote self-sufficiency in Nigeria,” Edun said.
The shift to naira-based sales of crude oil is part of a broader effort to strengthen the local currency and reduce dependence on foreign exchange, aiming to fortify Nigeria’s economic resilience amid global market uncertainties.
In July 2024, the federal government approved the sale of crude oil to the Dangote Petroleum Refinery and other refineries in naira, with the transition initially focusing on petrol production, according to the Crude Oil Refinery-owners Association of Nigeria (CORAN).
As of October 1, the plan is fully operational, with the Nigerian Ports Authority (NPA) facilitating coordination to ensure smooth transactions of crude oil sales in naira to the Dangote Refinery and other facilities.