The Federal Government has reaffirmed its commitment to the Naira-for-crude oil initiative, declaring it a permanent fixture in Nigeria’s long-term economic reform strategy.
The policy aims to strengthen the local currency, reduce pressure on foreign exchange, and promote economic sovereignty.
In a statement posted on Wednesday via the Federal Ministry of Finance’s official channels, the government emphasized that all domestic crude oil and refined petroleum sales will continue to be conducted in Naira. This move is part of a broader effort to improve local refining capacity, bolster energy security, and foster economic sovereignty.
The government explained that “the policy aims to increase economic sovereignty by curbing the demand for dollars in local petroleum transactions, encouraging investment in domestic refining, and promoting the Naira as a stable currency for energy trade.
“The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives.
A stakeholders’ meeting was held on Tuesday to evaluate the implementation progress and tackle emerging challenges. Key participants included the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who chairs the Implementation Committee; the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, who heads the Technical Sub-Committee; as well as officials from the Nigerian National Petroleum Company Limited, Dangote Petroleum Refinery and Petrochemicals, the Central Bank of Nigeria, Nigerian Ports Authority, and various regulatory agencies.
The government acknowledged that challenges are part of any major policy shift but assured that such issues are being addressed through coordinated efforts among all parties.
The policy aligns with Nigeria’s long-term economic objectives, especially in reducing reliance on foreign reserves, encouraging local content development, and creating a more stable pricing structure for petroleum products.
The Ministry reiterated that the Naira-for-crude initiative will continue indefinitely, as long as it remains beneficial to national interest and economic goals.
This policy is a crucial step in reducing the demand for dollars in domestic petroleum transactions while positioning the Naira as a viable currency for energy trade.
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