- President Tinubu announced the sale of crude oil in Naira at the Nigeria International Energy Summit
- The initiative aims to strengthen local refineries and reduce transaction costs
- The move is expected to lower fuel prices and stimulate economic growth in Nigeria
The Federal Government of Nigeria has announced that the introduction of the sale of crude oil in Naira is a strategic step towards enhancing the operational efficiency of local refineries, as well as reducing foreign exchange risks and transaction costs.
This initiative, which is part of broader energy sector reforms, was disclosed by President Bola Tinubu during the opening of the eighth edition of the Nigeria International Energy Summit (NIES) in Abuja on Tuesday.
Represented by the Minister of State for Finance, Dr. Doris Uzoka-Anite, President Tinubu emphasised that the move would bolster the domestic market, ensuring greater economic stability and improving the competitiveness of local refineries.
"In order to ensure that the local refineries are very competitive, thereby lowering the cost of the retail price of petroleum products for our populace, we introduced the sale of crude oil in Naira. By denominating crude sales in Naira, we are supporting the local currency and creating a more resilient economy," the President stated.
He further added that the policy was aimed at making petroleum products more affordable for Nigerians, thus improving their standard of living while stimulating broader economic growth.
The introduction of this measure is also seen as a crucial step in alleviating the effects of the removal of the fuel subsidy.
The 2025 edition of the summit, themed "Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential," reflects Nigeria’s ongoing commitment to establishing itself as a global leader in energy.
Tinubu also highlighted the progress the country has made within the oil and gas sector, marking 2025 as a year of significant transformation.
"Since assuming office, my administration has been steadfast in driving reforms in Nigeria’s energy sector. These include the removal of the fuel subsidy and the liberalisation of foreign exchange, two key reforms that have opened up the economy to investment," Tinubu said.
He further pointed to the country's recent selection as the host of the African Energy Bank’s headquarters, an achievement he described as a historic milestone.
This, he argued, reaffirms Nigeria's leadership in Africa’s energy sector and its commitment to sustainable development across the continent.
"By securing this prestigious institution, we have positioned Nigeria as the hub for energy financing, fostering investment, innovation, and job creation. This milestone underscores our dedication to energy security, economic growth, and regional cooperation," the President added.
Tinubu also highlighted the impact of various executive orders aimed at streamlining processes within the oil and gas sector.
These reforms have led to an increase in crude oil production due to improved security and incentives for investment.
He stressed that the country was also witnessing increased indigenous participation, especially through the Presidential Executive Order on Oil and Gas Sector Reforms, which had expedited licensing and promoted local content development.
The President also pointed to ongoing projects that would further enhance Nigeria's energy capacity.
This includes the Ajaokuta Kaduna Kano Gas Pipeline Project, which will increase the supply of clean energy to industries and households, as well as the Presidential Compressed Natural Gas Initiative, aimed at transforming the transportation sector and reducing the nation's reliance on a single fuel source.
In terms of fiscal and tax reforms, Tinubu reiterated the government's efforts to make the business environment more conducive to both local and international investments.
The Nigerian government is also actively developing a hydrogen policy, which aims to attract investors and integrate hydrogen into the nation's energy mix.
FEC gives final approval to N47.96 trillion 2025 budget proposal
Meanwhile, TheRadar reported that the Federal Executive Council (FEC) gave final approval to the 2025 budget proposal of N47.96 trillion.
This was disclosed by the Minister of Budget and Economic Planning, Atiku Bagudu, to State House correspondents after the last FEC meeting of 2024, held on Monday, December 16, at the Aso Rock Villa, Abuja.
