The Federal Government has reaffirmed that the Crude and Refined Product Sales in Naira initiative is a permanent policy. The government confirmed that the initiative, which mandates the transaction of crude oil and refined petroleum products in Naira, will continue indefinitely as long as it aligns with the country’s economic goals and serves the public interest. This policy, first approved by the Federal Executive Council (FEC), aims to strengthen Nigeria’s economic sovereignty and reduce dependence on the dollar for petroleum transactions.
The initiative is designed to bolster local refining capabilities and enhance energy security while stabilizing the foreign exchange market. By encouraging the use of Naira in petroleum transactions, the policy seeks to reduce the country’s reliance on foreign currencies, particularly the dollar, for domestic oil and gas trade. The Ministry of Finance emphasized that this is a long-term strategic directive and not a short-term or provisional measure.
Despite its ambitious goals, the policy’s implementation has faced challenges. The Ministry acknowledged that while there have been hurdles in the transition, efforts are being made to resolve them through coordinated action by key stakeholders. These challenges are actively being addressed by the Technical Sub-Committee, which includes top officials from relevant agencies and sectors.
A review meeting was held to assess the progress of the initiative, with key figures from both the public and private sectors in attendance. The collaboration between various stakeholders, such as NNPC, FIRS, and representatives from the Dangote Petroleum Refinery, reflects the broad support for the policy. The government is optimistic that the initiative will contribute to economic reform, enhance local content, and stabilize the pricing structure for petroleum products in Nigeria.