Our reporter
The Federal Government has commenced the sale of crude oil using the Naira currency, marking the first time the country has moved away from the traditional dollar-based transactions.
This ground-breaking policy was implemented starting October 1, 2024, and is aimed at lowering petrol prices and reducing the impact of the dollar on Nigeria’s economy.
The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a Federal Executive Council (FEC) meeting in Abuja.
The move follows a directive by President Bola Tinubu, who mandated that crude oil be sold to local refiners, including Dangote Refinery, in Naira.
This is part of a broader strategy to insulate the Nigerian economy from the volatility of foreign exchange markets, which has had a significant effect on the prices of petrol and other refined products.
“The sale of crude oil and refined products in Naira is a strategic initiative to stabilise petrol prices and lessen the burden on the economy caused by fluctuations in the dollar exchange rate,” Minister Edun stated.
The decision was reaffirmed during a post-commencement review by an Implementation Committee chaired by Minister Edun.
According to a statement from the Ministry of Finance’s Director of Information and Public Relations, Mohammed Manga, key stakeholders participated in the review and confirmed the success of the initiative’s rollout.
This policy marks a pivotal moment for Nigeria, Africa’s largest oil producer, as it seeks to retain more control over its oil revenue and create a buffer against the global currency market’s uncertainties.
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