The Nigerian government will start selling crude oil in naira to local refineries like Dangote’s, ending a 20-year-old scheme and enhancing transparency. This move is expected to improve the domestic fuel supply and stabilize the economy.
For years, Nigeria set aside 445,000 barrels of crude oil daily for local refineries, but operational issues led to oil-for-product swaps. Now, the government approved a plan to sell crude in naira, with Afreximbank facilitating the trade. This will reduce the need for foreign exchange and save billions on fuel imports.
This change will also help the Central Bank of Nigeria by reducing the demand for dollars, strengthening the naira, and making local refineries more efficient. The plan aims to create jobs, lower fuel prices, and require more transparency and accountability from the Nigerian National Petroleum Company (NNPC).
