Nigeria Begins Crude Oil Sales in Naira, Aims to Strengthen Local Currency and Boost Economy

The Federal Government of Nigeria has commenced the sale of crude oil and refined petroleum products in naira, signaling a pivotal shift in the country’s energy market and economic policies.

The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on October 6, who confirmed that the implementation began on October 1, 2024.

This move, according to Edun, is a strategic effort to enhance Nigeria’s economic growth and reduce reliance on foreign exchange.

 “The bold step taken by President Bola Tinubu’s administration is expected to have a lasting impact on Nigeria’s economy, enhancing growth, stability, and self-sufficiency,” Edun stated.

This shift aligns with a July decision by the Federal Executive Council (FEC) to allow the sale of crude oil to domestic refineries like Dangote Refinery in naira.

The measure is expected to foster economic resilience amid global market fluctuations and further boost the strength of the local currency.

 However, the success of this significant policy change largely depends on its effective implementation and accountability from key stakeholders.

With coordination from the Nigerian Ports Authority (NPA) and oversight by an Implementation Committee, the federal government aims to ensure transparency and efficiency.

If successful, this initiative could accelerate Nigeria’s rise in the international market, stabilize fuel prices, and ultimately improve the country’s economic standing.