Toba Owojaiye reporting
Abuja, Nigeria
In a historic and game-changing move, Nigeria has commenced selling crude oil and refined petroleum products in its local currency, the Naira. This bold initiative was officially launched on October 1, 2024, marking a paradigm shift in the nation’s economic strategy.
Truth Live News gathered that the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, confirmed the commencement of this policy during a review meeting chaired by him. The meeting brought together key government officials and industry stakeholders, including the Minister of State for Petroleum (Oil), the Special Advisers to the President on Revenue and Energy, and leadership from the Nigerian National Petroleum Company (NNPC) and Dangote Group.
These stakeholders, representing a broad coalition of the country’s economic and energy sectors, affirmed the initiative’s potential to bolster Nigeria’s economic self-reliance.
The move, as directed by the Federal Executive Council (FEC), represents a bold step by the administration of President Bola Ahmed Tinubu. The decision to price crude oil and petroleum products in Naira is expected to have lasting effects on the Nigerian economy, enhancing stability and growth while reducing dependency on foreign currency transactions. It positions Nigeria as a leader in exploring innovative economic models, especially in the face of fluctuating global markets.
According to Mr. Edun, the policy is designed to enhance economic self-sufficiency and secure long-term growth for the nation. “This initiative will not only strengthen the Naira but also foster a more resilient economy capable of weathering external shocks,” Edun remarked. The focus on local currency transactions in such a critical sector reflects the government’s long-term commitment to prioritizing Nigeria’s internal market dynamics over external forces.
During the post-commencement review, stakeholders including the NNPC, Dangote Group, and regulatory authorities expressed their strong support for the initiative. With these prominent players in Nigeria’s petroleum sector on board, the plan is expected to be seamlessly integrated into national and international trade practices.
NNPC’s Group Chief Executive Officer, alongside the Chief Financial Officer and Executive Vice President of Downstream, highlighted the operational feasibility of the policy. They noted that the company has already begun implementing systems to facilitate Naira-based transactions, a move that would also encourage local businesses and international partners to engage more directly with Nigeria’s petroleum sector.
This strategic shift comes at a time when Nigeria is navigating significant economic challenges, including inflation and currency devaluation. By pricing crude oil in Naira, the government aims to reduce the pressure on the foreign exchange market, boost national revenue, and reinvigorate local industry.
The broader implications of this policy extend beyond the petroleum sector. It sets a precedent for other industries to explore local currency-based transactions, which could contribute to an overall strengthening of the Naira and a reduction in Nigeria’s reliance on the U.S. dollar. This approach, heralded as a landmark economic reform, aligns with the Tinubu administration’s vision of creating a self-sufficient economy that can thrive amid global uncertainties.
As Nigeria embarks on this new economic journey, the impact of selling crude oil in Naira is expected to ripple across the nation’s financial landscape. It is a step towards greater control over national resources, a boost for local businesses, and a move to shield the economy from global shocks. The support from major stakeholders, including NNPC and the Dangote Group, signals that this bold strategy has the backing needed to ensure its success.
This shift in policy could be a turning point that redefines Nigeria’s economic future. The nation now stands at the forefront of innovation in leveraging its natural resources, making this a pivotal moment in its quest for self-reliance and economic prosperity.