Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has announced a transformative move to sell crude oil in naira to local refiners, a policy expected to drive Nigeria’s industrialization and modernization. The initiative, fully endorsed by the Federal Executive Council (FEC), allows local refiners to buy crude oil in naira, then sell refined products to marketers domestically in the same currency, which is anticipated to strengthen the naira and boost economic development.
Addressing State House correspondents after a meeting with President Bola Tinubu at the Presidential Villa, Edun said the policy shift is already attracting private sector investment and paving the way for new industries across various sectors, including chemicals, paints, building materials, and textiles.
“With private sector refining of crude oil, we now have raw materials not just for agriculture but also for industry. This is part of Mr. President’s strategy to create jobs, foster private investment, and grow the economy,” Edun explained.
The new market-driven pricing model for petroleum products has also enabled the Nigerian National Petroleum Company Limited (NNPC) to improve its financial standing, benefiting federal, state, and local governments by increasing funds for salaries, social services, and infrastructure projects.
The meeting included representatives from Afreximbank, the financial adviser for the initiative, which will facilitate transactions between crude sellers and buyers. Edun also praised the investment by the Dangote Group, noting the Dangote refinery’s 650,000 barrels-per-day capacity is central to the success of this policy.
Alhaji Aliko Dangote, Chairman of Dangote Refinery and Petrochemical Company, confirmed that the refinery would be able to meet Nigeria’s fuel demand as more naira-based crude is supplied. “This initiative will revive industries across plastics, cooking gas, aviation fuel, and other petroleum products. With our ramping capacity, we’ll fully satisfy the market,” Dangote said, adding that as NNPC refineries come online, Nigeria could become one of the world’s largest exporters of petroleum products.
The policy is the result of close collaboration among multiple stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Ports Authority (NPA), and the Nigerian Navy, among others. The initiative aligns with President Tinubu’s pledge to support domestic industries, attract investment, and drive Nigeria’s industrial development.
