In a groundbreaking step aimed at easing the pressure on the Naira and ensuring better fuel availability across Nigeria, the Federal Government has begun selling crude oil to local refineries in exchange for petroleum products, all to be traded in Naira. This initiative is expected to significantly reduce transaction costs and improve the domestic supply of fuel.

The Federal Ministry of Information and National Orientation made the announcement on X (formerly Twitter), emphasizing the government’s commitment to bolstering the economy by cutting down on foreign currency usage in petroleum transactions.

The statement read:  

“In a landmark move towards reducing pressure on the Naira, eliminating unnecessary transaction costs, and improving the availability of petroleum products, the Federal Government has successfully initiated the sale of crude to local refineries as well as the corresponding purchase of petroleum products in Naira.”

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed the details in Abuja after the Technical Sub-Committee meeting on the sale of crude oil in local currency. Represented by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, the Minister confirmed the completion of agreements for the implementation of the Federal Executive Council’s (FEC) approval for crude oil sales to local refineries in Naira.

Edun explained that the initiative is part of a broader effort to reduce the burden on Nigeria’s currency and ensure that petroleum products such as Premium Motor Spirit (PMS) and diesel are readily available to Nigerians. 

“From 1st October, NNPC will commence the supply of about 385,000 barrels per day of crude oil to the Dangote Refinery, to be paid for in Naira. In return, the refinery will supply PMS and diesel of equivalent value to the domestic market, also to be paid for in Naira,” Edun said.

The Minister highlighted that this initiative will not only boost the availability of fuel but also streamline operations by removing unnecessary costs associated with foreign exchange transactions. He further revealed that all associated regulatory costs, such as those involving the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), would also be settled in Naira.

In addition, a “one-stop shop” will be set up at the NPA in Lagos to coordinate services from regulatory and security agencies to ensure the smooth execution of this new policy.

The Federal Government worked in close collaboration with key stakeholders such as the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery to establish the agreement. The loading of the first batch of PMS from the Dangote Refinery is scheduled to commence on Sunday, September 15, marking the official launch of the initiative.

Edun expressed gratitude to President Bola Ahmed Tinubu for championing the effort and emphasized the government’s ongoing commitment to delivering on its promises.

This milestone marks a critical step in Nigeria’s journey toward energy self-sufficiency, improved fuel supply, and economic growth.