Nigeria has officially begun selling crude oil and refined petroleum products in naira, as announced by the Federal Government.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated on Saturday that, in accordance with the Federal Executive Council’s (FEC) directive, the sale of these products in naira started on October 1.
This information was revealed in a statement by the Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga.
“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 brought together prominent figures, including the Honourable Minister of State, Petroleum (Oil), 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), the representative of the Chairman of Dangote Group, the Vice President of Dangote Group, and the 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).”
Manga emphasized that the strategic initiative taken by President Bola Tinubu’s administration is expected to have a lasting positive effect on Nigeria’s economy, fostering growth, stability, and self-sufficiency.
He noted that as Nigeria continues to navigate the complexities of global markets, this bold move positions the country for future success.
This decision follows the Federal Executive Council’s (FEC) approval, roughly nine weeks ago, of a proposal by President Tinubu directing the NNPC to sell crude oil to Dangote Petroleum Refinery and other refineries in naira.
The Federal Government had previously announced that the sale of crude oil to the Dangote refinery and other local refineries in naira would begin on October 1.
The policy aims to stabilize pump prices, potentially leading to lower and more predictable fuel costs for consumers. Conducting transactions in naira instead of dollars would alleviate pressure on foreign exchange reserves, stabilize the naira-dollar exchange rate, and help control inflation.
Additionally, the policy is expected to boost local refining capacity, reducing the country’s reliance on imported fuel and saving billions of dollars that can be reinvested in other sectors of the economy.
This initiative will also enhance Nigeria’s energy security by ensuring a more reliable and self-sufficient fuel supply.