Tinubu’s Naira-for-Crude Policy Ensures Fuel Supply Stability Amid Global Energy Crisis
President Bola Tinubu’s Naira-for-Crude initiative has helped Nigeria maintain a stable supply of petroleum products, even as countries worldwide face severe fuel shortages amid the Iran-Israel-US conflict in the Middle East. The Presidency confirmed on Wednesday that the policy, which allows local refineries to pay for crude oil in naira instead of dollars, has shielded the nation from the global energy turmoil.
The policy, approved in July 2024 and launched in October 2024, has enabled uninterrupted petroleum product availability across Nigeria. Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, highlighted that while other countries are grappling with long queues and rationing, Nigeria’s fuel stations continue to operate smoothly. Ajayi noted that disruptions caused by Iran’s closure of the Strait of Hormuz, a critical oil passage accounting for over 20% of global flows, have triggered shortages in Europe, Asia, and parts of Africa.
Ajayi cited examples of how other nations are responding to the crisis. Vietnam is promoting remote work to reduce fuel use, Bangladesh is imposing daily fuel limits and early school closures, Pakistan is reducing government workdays, and Egypt is enforcing early shop closures. Even the Philippines declared a national energy emergency, while in the United States, long queues for petrol have become common. “Nigeria, in contrast, has maintained consistent supply, demonstrating the effectiveness of our domestic energy strategy,” Ajayi said.
The Dangote Petroleum Refinery in Lekki, Lagos, has been central to the policy’s success. Since commencing PMS production in October 2024, the refinery has eliminated petrol queues, increased exports to African nations, and helped stabilize domestic prices despite a 10% increase in crude oil costs. Ajayi emphasized that the refinery has also reduced foreign exchange pressure by sourcing crude locally and cutting demurrage costs previously incurred by the Nigerian National Petroleum Company Limited.
Ajayi described the Naira-for-Crude initiative and Dangote refinery as critical pillars of Nigeria’s energy sovereignty. “The refinery is not just an industrial asset; it’s the foundation of our energy independence and a catalyst for sustainable economic growth,” he said. By ensuring year-round availability of petroleum products and strengthening Nigeria’s position as a strategic exporter in Africa, the policy is transforming the nation into a resilient, energy-independent economy.
source: punch