The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced on Saturday that the sale of crude oil and refined petroleum products in Naira officially began on October 1, in accordance with the Federal Executive Council (FEC) directive.
This was revealed in a statement by Mohammed Manga, Director of Information and Public Relations at 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 review the post-commencement phase of the Crude Oil and Refined Products Sales in Naira initiative, key stakeholders reaffirmed the official launch of this strategic policy,” the statement read.
The meeting included high-profile participants such as the Honourable Minister of State for Petroleum (Oil), the President’s Special Advisers on Revenue and Energy, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), representatives from Dangote Group, and the top management of the Nigerian National Petroleum Company (NNPC), led by its Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream).
Manga highlighted that this bold initiative by President Bola Tinubu’s administration is expected to have a transformative impact on Nigeria’s economy, fostering growth, stability, and self-sufficiency. He also emphasized that the move positions Nigeria to navigate the complexities of global markets more effectively, setting the stage for long-term economic success.
This development comes nearly nine weeks after the FEC approved a proposal by President Tinubu directing the NNPC to sell crude oil to Dangote Petroleum Refinery and other refineries in Naira. The policy, which took effect on October 1, aims to stabilize fuel pump prices, offering consumers potentially lower and more predictable costs.
By conducting these transactions in Naira rather than dollars, the government expects to ease pressure on foreign exchange reserves, stabilize the dollar-Naira exchange rate, and control inflation. The initiative will also boost local refining capacity, reducing Nigeria’s dependence on imported fuel and saving billions of dollars that can be redirected into other key sectors of the economy.
Moreover, the policy is seen as a critical step toward strengthening Nigeria’s energy security by ensuring a more reliable and self-sufficient fuel supply.
