Nigeria has officially begun selling crude oil and refined petroleum products in naira, as announced by the Federal Government.
This announcement was made in a statement by Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance.
“Following a meeting of the Implementation Committee, chaired by the Minister of Finance and Coordinating Minister of the Economy to review the Crude Oil and Refined Products Sales in Naira initiative, key stakeholders affirmed the start of this strategic initiative,” the statement said.
Manga emphasized that this strategic initiative, a bold step by President Bola Tinubu’s administration, is expected to have a significant and lasting impact on Nigeria’s economy by promoting growth, stability, and self-sufficiency.
He added that as Nigeria navigates the complexities of global markets, this strategic move positions the country for future success.
This initiative comes about nine weeks after the FEC approved President Tinubu’s directive for the NNPC to begin selling crude oil to Dangote Petroleum Refinery and other refineries in naira.
The Federal Government had stated that the sale of Crude Oil to the Dangote Refinery and other facilities in naira would start on October 1.
The policy aims to stabilize pump prices, potentially resulting in lower and more predictable fuel costs for consumers.
By conducting transactions in naira instead of dollars, the pressure on foreign exchange reserves could be alleviated, which may help stabilize the dollar-naira exchange rate and control inflation.
Additionally, it aims to enhance local refining capacity, thereby reducing dependence on imported fuel and saving billions of dollars that can be reinvested into other areas of the economy.
The government’s decision is also expected to boost local refining capacity, strengthening Nigeria’s energy security by ensuring a more reliable and self-sufficient fuel supply.
RN
