By Habeeb Ibrahim
The Federal Government has officially begun the sale of crude oil and refined petroleum products in Naira, implementing a directive from the Federal Executive Council (FEC.
The initiative, which took effect on October 1, 2024, marks a significant shift in the country’s oil trade strategy, aiming to strengthen the Naira and enhance economic stability.
In a press release, the Honorable Minister of Finance and Coordinating Minister of the Economy confirmed the commencement, stating, “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 1st, 2024.”
A post-commencement review meeting on October 3, 2024, chaired by the Minister, reaffirmed the success of the rollout. The Implementation Committee, consisting of top government officials and industry stakeholders, conducted the review to evaluate the progress of the initiative. The meeting featured participation from the Hon. Minister of State for Petroleum (Oil), the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, and the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Key private sector figures, such as the Vice President of Dangote Group and a representative of the Group’s Chairman, joined NNPC executives, including the Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream), in the discussions.
This strategic policy is intended to reduce Nigeria’s dependence on foreign currencies for oil trade and boost demand for the Naira in global markets. Experts expect this to stabilize the national currency and improve local economic conditions. By denominating oil sales in Naira, the government aims to retain more value within the Nigerian economy, protect against fluctuations in foreign exchange rates, and promote a stronger fiscal position.
The policy is part of a broader economic reform agenda aimed at enhancing Nigeria’s self-sufficiency and leveraging its position as one of the world’s leading oil producers. The effectiveness of the initiative will be closely monitored in the coming months to assess its full impact on both the local economy and international oil markets.
