The Federal Government has officially begun selling crude oil and refined petroleum products in naira, as announced by the Ministry of Finance.
On Saturday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed that the sale of these products in naira commenced on October 1, following a directive from the Federal Executive Council (FEC).
This information was shared in a statement issued by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance.
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“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 highlighted that the strategic initiative and bold step taken by the Bola Tinubu-led administration is poised to make a lasting impact on Nigeria’s economy, promoting growth, stability, and self-sufficiency.
He emphasized that as the country continues to navigate the complexities of global markets, this move strategically positions Nigeria for long-term success.
This development comes about nine weeks after the Federal Executive Council (FEC) approved 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 announced that the sale of crude oil to the Dangote refinery and other 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.
By conducting transactions in naira instead of dollars, it is expected to reduce pressure on foreign exchange reserves, stabilize the dollar-naira exchange rate, and help control inflation.
Additionally, the move is expected to boost local refining capacity, reducing reliance on imported fuel and saving billions of dollars that can be reinvested into other sectors of the economy.
This shift will also enhance Nigeria’s energy security by ensuring a more reliable and self-sufficient fuel supply.
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