In a groundbreaking move, Nigeria has officially commenced the sale of crude oil and refined petroleum products in Naira
The Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, announced that, in line with the Federal Executive Council (FEC) directive, the sale of crude oil and refined petroleum products in Naira has officially commenced as of October 1, 2024.
Following a meeting of the Implementation Committee, chaired by the minister to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira initiative, the commencement of this strategic initiative was affirmed by key stakeholders.
The meeting brought together prominent figures, including the Minister of State, 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 the Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream).
The new policy by the Bola Tinubu-led administration is expected to have a lasting impact on Nigeria’s economy, fostering growth, stability, and self-sufficiency, especially as the country continues to navigate the complexities of global markets.
Benefits of the policy
*This policy will stabilize pump prices of PMS, potentially resulting in lower and more predictable fuel costs for consumers.
*The pressure on foreign exchange reserves would ease, helping to stabilise the dollar-naira exchange rate and control inflation.
*Increased local refining capacity will reduce dependence on imported fuel, saving billions of dollars that can be reinvested into other areas of the economy.
*Additionally, boosting local refining capacity strengthens Nigeria’s energy security by ensuring a more reliable and self-sufficient fuel supply.
