The sale of crude oil and refined products in naira comes nearly two months after the FEC approved President Bola Tinubu’s proposal directing the NNPC to implement the policy for local refineries, including the Dangote Petroleum Refinery.
Abuja, Nigeria — The Federal Government has announced the official commencement of crude oil and refined petroleum product sales in naira, in line with the directive of the Federal Executive Council (FEC).
This strategic initiative, which aims to boost the country’s economic stability and reduce reliance on foreign currencies, took effect on October 1.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the disclosure on Saturday, stating that the transition to naira-denominated sales follows a meeting of the Implementation Committee.
The meeting, which reviewed the progress of the new policy, was chaired by Edun and attended by key stakeholders, including the Minister of State for Petroleum, the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, and top officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Other attendees included representatives from the Dangote Group and senior management of the Nigerian National Petroleum Company (NNPC), led by the Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream).
In a statement issued by the Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga, the government emphasized that the new policy is a “strategic initiative and bold step” aimed at enhancing economic growth, stability, and self-sufficiency. Manga added that this development will position Nigeria for long-term success in navigating the complexities of global markets.
The sale of crude oil and refined products in naira comes nearly two months after the FEC approved President Bola Tinubu’s proposal directing the NNPC to implement the policy for local refineries, including the Dangote Petroleum Refinery.
The government hopes that the move will stabilize pump prices, potentially resulting in lower and more predictable fuel costs for consumers. Furthermore, it is expected to ease the pressure on Nigeria’s foreign exchange reserves by reducing the demand for dollars, thereby stabilizing the naira-dollar exchange rate and helping to control inflation.
Additionally, the policy is anticipated to increase the capacity of local refining, reduce dependence on imported fuel, and save billions of dollars, which could be reinvested into other critical sectors of the economy. The government believes this will strengthen Nigeria’s energy security by ensuring a more reliable and self-sufficient fuel supply.
The Federal Government reiterated its commitment to implementing initiatives that drive economic growth and ensure a prosperous future for the nation.
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