The federal government of Nigeria has officially initiated the sale of crude oil and refined petroleum products in naira, marking a significant shift in the nation’s energy market.

This strategic move began on October 1, 2024, as announced by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, on Saturday, October 6.

The decision to sell oil in the local currency aligns with a directive from the Federal Executive Council (FEC) and aims to bolster Nigeria’s economy.

Following a post-commencement review meeting involving key stakeholders—including the Minister of State for Petroleum, top executives from the Nigerian National Petroleum Company (NNPC), and representatives from the Dangote Group—Edun emphasized the importance of this initiative for economic stability and growth.

“The strategic initiative and bold step taken by President Bola Tinubu’s administration is expected to have a lasting impact on Nigeria’s economy, enhancing growth, stability, and self-sufficiency,” Edun stated, highlighting the government’s commitment to strengthening the local currency and reducing dependency on foreign exchange.

Nigeria Launches Crude Oil Sales in Naira

The FEC had initially approved this shift during a meeting on July 29, allowing sales to Dangote Petroleum Refinery and other local refineries in naira.

The initiative is set to commence with refineries producing petrol, according to the Crude Oil Refinery-owners Association of Nigeria (CORAN).

As of October 1, the initiative is fully operational, with the Nigerian Ports Authority (NPA) facilitating coordination among stakeholders to ensure a seamless sale process.

This groundbreaking development is anticipated to enhance Nigeria’s economic resilience amid global market complexities, positioning the country for a more self-reliant future.

As Nigeria embarks on this new chapter, the impact of selling crude oil in naira is expected to resonate across various sectors, signalling a transformative period for the nation’s energy landscape.