Nigeria officially begins selling crude oil in naira.
The Federal Government of Nigeria has announced that crude oil and refined petroleum products will now be sold in naira.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, stated on Saturday that the sale of the products in naira began on October 1 in accordance with a direction from the Federal Executive Council (FEC).
Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, confirmed this in a statement.
The Implementation Committee, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, met to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira project. The initiative’s key players have confirmed its launch, according to the announcement.
“The meeting brought together prominent figures, including the Honourable Minister of State for 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
Manga remarked that the Bola Tinubu administration’s strategic plan and daring step will have a long-term impact on Nigeria’s economy, enhancing growth, stability, and self-sufficiency.
He noted that the country is still navigating the complexity of global markets, and the smart step puts Nigeria for long-term success.
The move comes around nine weeks after the FEC approved Tinubu’s motion for the NNPC to sell crude oil to Dangote Petroleum Refinery and other refineries in naira.
The Federal Government had announced that crude oil sales to the Dangote plant and other refineries in naira would begin on October 1.
The program attempts to keep pump prices stable, potentially resulting in lower and more predictable fuel expenses for customers.
Transactions in Naira rather than dollars would relieve pressure on foreign exchange reserves, stabilising the dollar-Naira exchange rate and reducing inflation.
Furthermore, it would increase domestic refining capacity, lowering dependency on imported petroleum and freeing up billions of dollars for other economic sectors.
The government’s decision would also increase domestic refining capacity, bolstering Nigeria’s energy security by providing a more dependable and self-sufficient petroleum supply.