In a strategic move to bolster Nigeria’s economy and reduce pressure on the Naira, the Federal Government has initiated the sale of crude oil to local refineries, with payments and corresponding petroleum product purchases to be conducted in Naira. The initiative, announced on Saturday, September 14, by the Federal Ministry of Information and National Orientation, is expected to lower transaction costs and enhance the availability of fuel in the country.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed the development during a meeting of the Technical Sub-Committee on the sale of crude oil to local refineries. Represented by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, the Minister confirmed that agreements and modalities for the implementation of the initiative have been completed.
"All agreements have been finalized, and the loading of the first batch of Premium Motor Spirit (PMS) from the Dangote Refinery will commence on Sunday, September 15," the statement read. It added that, starting October 1, the Nigerian National Petroleum Corporation Limited (NNPCL) will supply approximately 385,000 barrels of crude oil per day to the Dangote Refinery, all transactions being settled in Naira.
The move is part of a broader plan approved by the Federal Executive Council (FEC) under President Bola Tinubu’s administration, aimed at reducing the country’s reliance on foreign currency transactions in the oil sector. According to the Minister, the Naira-based crude oil sale will alleviate pressure on the national currency, eliminate unnecessary transaction fees, and boost the availability of petroleum products for domestic consumption.
Diesel will be sold to any interested buyer in Naira, while PMS will initially be sold exclusively to NNPCL, which will then distribute it to various marketers. Regulatory costs associated with the process, such as those from the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will also be paid in Naira.
A "one-stop shop" is being established to streamline operations with regulatory and security agencies, ensuring the smooth implementation of the initiative. This facility will be located at the NPA in Lagos.
The Federal Government expressed gratitude for the efforts put into the program and emphasized that the move represents a major step toward energy self-sufficiency and economic growth in Nigeria.
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