President Bola Tinubu is currently receiving a briefing from the Implementation Committee on Crude Oil and Refined Products Sales in Local Currency at the Aso Rock Presidential Villa.

The committee, led by the Minister of Finance and Coordinating Minister of Economy, Mr Wale Edun with key figures such as Dangote Group Chairman, Aliko Dangote and Nigerian National Petroleum Company Limited (NNPC) CEO Mr Mele Kyari, presented insights on the Federal Government’s policy shift to conduct crude oil sales in naira rather than U.S. dollars.

This initiative, which began in October, aligns with a Federal Executive Council-approved strategy aimed at stabilizing domestic fuel prices, reducing foreign exchange (FOREX) pressures, and strengthening the naira.

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The policy, piloted with the Dangote Refinery, allows the NNPC to sell crude in local currency.

This move that is projected to cut down Nigeria’s FOREX demands by as much as 40%.

Support from institutions like the Central Bank of Nigeria and AfreximBank has reinforced the approach, which, according to government officials, will lower import-related expenses and facilitate a more accessible petroleum supply.

The policy has seen early challenges, including a recent pricing dispute in September where the NNPC reported purchasing petrol at N898 per litre from the refinery.

However, Dangote’s representatives countered the claim, citing that official pricing terms were not yet settled.

The committee is expected to provide further updates on the policy’s impact as it progresses, with hopes that it will streamline currency transactions and improve Nigeria’s economic resilience.

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