The Federal Government has reaffirmed that its policy of transacting crude oil and refined petroleum products in Naira will remain in place indefinitely, provided it continues to serve the public interest and aligns with the nation’s long-term economic objectives.
This announcement, made through the official X (formerly Twitter) handle of the Federal Ministry of Finance on Wednesday morning, follows increasing public queries regarding the future of the policy.
First approved by the Federal Executive Council (FEC), the initiative is not a temporary measure but a strategic, long-term policy aimed at strengthening Nigeria’s economic autonomy.
The Ministry emphasized that this is not a short-term intervention but a key national directive designed to foster growth in local refining and stabilize the country’s foreign exchange market by reducing dependence on the U.S. dollar in domestic petroleum transactions.
The policy’s core objectives include promoting energy security, boosting local refining capabilities, and encouraging domestic infrastructure investment.
By requiring crude oil and refined products to be sold in Naira, the initiative aims to increase the country’s economic sovereignty and reduce foreign exchange pressure in the petroleum sector.
“The Crude and Refined Product Sales in Naira initiative is designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market,” the Ministry stated.
Acknowledging the complexities of transitioning to this new system, the government has assured the public that ongoing challenges are being addressed with coordination and focus.
“As with any major policy shift, challenges may arise, but the implementation team is actively addressing these issues through a unified approach,” the Ministry added.
To evaluate progress and tackle remaining obstacles, the Technical Sub-Committee on the initiative met this Tuesday for a comprehensive review. Key figures from both the public and private sectors attended the meeting, including the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who leads the Implementation Committee.
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Other notable attendees included Mr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), and Mr. Dapo Segun, Chief Financial Officer of NNPC Limited.
The meeting also saw participation from representatives of NNPC Limited, Dangote Petroleum Refinery and Petrochemicals, and other key regulatory bodies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Central Bank of Nigeria (CBN), and Nigerian Ports Authority (NPA). Additionally, stakeholders from Afreximbank and the Committee’s Secretary, Hauwa Ibrahim, were present.
This policy aligns with the government’s broader economic reform agenda, focusing on reducing pressure on foreign reserves, fostering local content development, and creating a more predictable pricing structure for refined petroleum products in Nigeria’s domestic market.
The significant participation of public and private sector leaders underscores the scale of collaboration required to ensure the policy’s success, signaling growing confidence in the country’s commitment to local capacity building and currency resilience.
