The Federal Government has reiterated its commitment to the ongoing policy mandating the sale of crude oil and refined petroleum products in Naira.
In a statement issued by the Federal Ministry of Finance on Wednesday, the government clarified that the policy is not a short-term intervention but a “key policy directive” aimed at achieving long-term economic and energy goals.
“The Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market,” the Ministry stated.
The announcement comes at a time of market uncertainty surrounding the sustainability of the initiative, which was introduced to stabilize the Naira.
It is expected to encourage domestic investment in refining, and reduce Nigeria’s exposure to foreign currency fluctuations.
The Ministry acknowledged that the implementation of such a far-reaching policy comes with expected challenges.
“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time. However, such issues are being actively addressed through coordinated efforts among all parties,” the statement added.
The Naira-denominated sales policy is seen as part of broader government efforts to deepen economic resilience and strengthen the local energy value chain.
It is also intended to support domestic refineries, such as the Dangote Refinery and other modular plants, by ensuring easier access to feedstock without the pressure of forex transactions.
Further clarifications are expected from the Central Bank of Nigeria and the Nigerian National Petroleum Company Limited (NNPC Ltd.) on operational details and compliance measures.
