The Nigerian federal government has officially started selling crude oil and refined petroleum products in naira, marking a significant change in the country's energy market. This new policy was implemented on October 1, 2024, according to an announcement made by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, on Saturday, October 6.
In a statement, Edun confirmed that the decision came after a review by the Implementation Committee, which was set up to manage the initiative's rollout. The committee, which includes key figures such as the Minister of State for Petroleum, the President's Special Advisers on Revenue and Energy, and executives from the Nigerian National Petroleum Company (NNPC) and Dangote Group, has been overseeing the transition.
"This strategic move by President Bola Tinubu's administration is expected to positively impact Nigeria's economy by promoting growth, stability, and self-reliance," Edun said.
The shift to selling crude oil in naira is part of the government's broader strategy to strengthen the local currency and reduce reliance on foreign exchange. This policy is also expected to enhance Nigeria’s economic resilience amid the challenges of the global market.
The Federal Executive Council (FEC) had initially approved the sale of crude oil to Dangote Petroleum Refinery and other refineries in naira during a meeting on July 29, 2024. This shift begins with refineries that produce petrol, as previously announced by the Crude Oil Refinery-owners Association of Nigeria (CORAN).
As of October 1, Nigeria has fully implemented the policy, with the Nigerian Ports Authority (NPA) ensuring smooth coordination among stakeholders to facilitate the sale of crude oil to Dangote refinery and other refineries in naira.
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