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Tayo Busayo, Abuja
DAILY COURIER - Nigeria has officially commenced the sale of crude oil and refined petroleum products in naira, marking a significant shift in its economic strategy. The Federal Government announced that this initiative took effect on October 1, following a directive from the Federal Executive Council (FEC).
Finance Minister Wale Edun disclosed the development on Saturday, emphasizing its potential to enhance the country's economic stability and growth. This announcement was detailed in a statement by Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance.
In a review meeting led by Edun, key stakeholders from various sectors discussed the implications of the new policy. The meeting included high-profile figures such as the Minister of State for Petroleum, the Special Advisers to the President on Revenue and Energy, and executives from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), along with representatives from Dangote Group and the Nigerian National Petroleum Company (NNPC).
Manga highlighted that this initiative, part of President Bola Tinubu's broader economic strategy, is expected to have a profound and lasting impact on Nigeria’s economy. “This bold step positions Nigeria to navigate the complexities of global markets and aims to ensure our success in the future,” he said.
The policy follows a recent FEC approval allowing the NNPC to sell crude oil to Dangote Petroleum Refinery and other local refineries in naira. By transacting in the local currency, the government aims to stabilize fuel prices, potentially leading to lower and more predictable costs for consumers.
Additionally, the move is anticipated to ease pressure on Nigeria’s foreign exchange reserves, contributing to a more stable dollar-naira exchange rate and controlling inflation. The switch to naira transactions is also expected to bolster local refining capacity, reducing the nation’s reliance on imported fuel and saving significant amounts of foreign currency that can be reinvested in other sectors of the economy.
The government’s strategy aims to strengthen Nigeria’s energy security, ensuring a more reliable and self-sufficient fuel supply for its citizens. As this initiative unfolds, the government hopes to create a more robust economic environment that supports growth and development in the years to come.
