Nigeria commences sale of crude oil in Naira

The federal government of Nigeria has officially commenced the sale of crude oil and refined petroleum products in naira, marking a significant shift in the nation’s energy market. 

On Saturday, October 6, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, announced that the sale, in line with a directive from the Federal Executive Council (FEC), began on October 1, 2024.

In a statement, Edun said the move was affirmed after a post-commencement review meeting by the Implementation Committee, which was formed to oversee the rollout of the initiative. The meeting involved key stakeholders, including the Minister of State for Petroleum, the Special Advisers to the President on Revenue and Energy, as well as top executives from the Nigerian National Petroleum Company (NNPC) and Dangote Group.

“The strategic initiative and bold step taken by President Bola Tinubu’s administration is expected to have a lasting impact on Nigeria’s economy, enhancing growth, stability, and self-sufficiency,” Edun stated.

The decision to sell crude oil in naira is seen as part of the administration’s broader efforts to strengthen the local currency and reduce dependency on foreign exchange. It is also expected to position Nigeria for economic resilience amid global market complexities.

The federal government had initially approved the sale of crude oil to Dangote Petroleum Refinery and other refineries in naira during a July 29 FEC meeting. The shift is anticipated to start with refineries that produce petrol, according to a previous statement by the Crude Oil Refinery-owners Association of Nigeria (CORAN).

As of October 1, Nigeria has fully implemented this initiative, with the Nigerian Ports Authority (NPA) facilitating coordination among stakeholders to ensure the smooth sale of crude oil to the Dangote refinery and other refineries in naira.