Starting October 1, 2024, Nigeria will commence the sale of crude oil to the Dangote Refinery and other domestic refineries in Naira.
This was disclosed on Monday by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during a review meeting in Abuja.
The move is part of the Nigerian government’s broader efforts to strengthen the local economy and reduce reliance on foreign currency for domestic transactions.
The decision follows President Bola Tinubu’s directive, with the Implementation Committee working on the modalities since last week.
The committee comprises top officials from the Nigerian National Petroleum Company Limited (NNPCL), Central Bank of Nigeria, Federal Inland Revenue Service, and the Ministry of Finance, including Permanent Secretary Mrs. Lydia Jafiya.
Representatives from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank, which is involved in a futures crude oil sale arrangement with NNPCL, were also part of the discussions.
This policy is expected to impact the Nigerian economy by boosting local currency usage and reducing the demand for foreign exchange, particularly in the oil and gas sector.
The shift to Naira transactions for crude oil sales could also have broader implications for the stability of the Naira and the nation’s fiscal policies.