The recently introduced naira-for-crude policy represents one of the most intelligent and pragmatic moves the Federal Government has made to reform Nigeria’s long-troubled oil and gas sector. This is more than just a shift in payment methods—it’s a deliberate, long-term strategy aimed at reducing Nigeria’s dependence on foreign currencies, strengthening domestic refining capabilities, and boosting national economic self-reliance.
For years, Nigeria exported its crude oil, only to import refined petroleum products at inflated prices. That counterproductive cycle has drained billions of dollars in foreign exchange and left the economy vulnerable. However, the naira-for-crude initiative flips that script. It ensures that local refineries are prioritized, crude oil is paid for in naira, and more value remains within Nigeria’s economy.
Coordination Among Key Stakeholders
During a recent high-level meeting of the Technical Sub-Committee on Domestic Crude Sales in Naira, key stakeholders reviewed the progress of the new policy. The meeting, chaired by Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, brought together top decision-makers from across the oil and financial sectors. Among those present were Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and representatives from the Nigerian National Petroleum Company Limited (NNPC Ltd.), Dangote Refinery, the Central Bank of Nigeria (CBN), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Ports Authority (NPA).
This roundtable highlighted the importance of collaboration. Regulators and operators engaged directly, with transparency and shared purpose. This kind of hands-on coordination marks a significant shift from the typical bureaucratic silos that have hindered past reforms.
Policy Implementation Showing Positive Results
So far, the numbers are encouraging. Over 48 million barrels of crude oil have been delivered to local refineries under this policy, with payments made in naira. For the first time in decades, Nigeria is channeling its own resources toward self-sufficiency in petroleum processing.
Monthly supply schedules have now been adopted, giving local refineries the clarity they need to plan operations, avoid disruptions, and maintain consistent output. In addition, the establishment of a “one-stop shop” approval system has streamlined regulatory processes, making it easier for stakeholders to comply with rules and obtain timely approvals.
These practical improvements are not just bureaucratic wins—they directly impact refinery efficiency, employment opportunities, and overall energy security.
Dangote Refinery Leads the Way
A major signal of success is the involvement of Dangote Refinery, which is already receiving crude oil through the naira-for-crude framework. As one of the largest refineries on the continent, Dangote’s early adoption shows that this policy can be implemented on a large scale. Other refineries are also preparing to participate, and their inclusion will only accelerate the transformation of Nigeria’s refining landscape.
This proactive shift from an import-reliant fuel system to one anchored in local refining marks a strategic win for Nigeria. It is a tangible example of President Bola Tinubu’s Renewed Hope Agenda in action—one that seeks to harness Nigeria’s internal strengths to build long-term national resilience.
Strengthening the Energy Sector and Economy
With domestic refineries now accessing a more stable and predictable crude oil supply, there is a noticeable improvement in refinery operations, reduced downtime, and increased throughput. These gains are not only technical milestones—they translate into real economic benefits such as job creation, foreign exchange savings, and improved fuel availability for Nigerians.
Furthermore, the shift to naira payments supports monetary stability. By reducing the demand for foreign exchange in crude oil transactions, the Central Bank gains more room to manage Nigeria’s currency and inflation challenges more effectively.
The Broader Economic Implications
Beyond oil, the naira-for-crude policy sets a powerful precedent for other sectors. It demonstrates that domestic value chains can be strengthened through thoughtful policy design and inter-agency collaboration. It also affirms that Nigeria can move away from extractive economic patterns toward a more productive and inclusive model of development.
The Federal Government’s emphasis on local capacity-building and regulatory synergy shows a genuine commitment to systemic reform—not just short-term fixes. By ensuring that resources are processed and consumed locally, the country enhances its industrial base, fosters technology transfer, and opens up new value-adding opportunities across the supply chain.
A Vision Grounded in Reform and Results
The naira-for-crude initiative is not simply about changing how oil is sold; it’s about transforming Nigeria’s approach to economic management. It proves that with the right vision and cooperation between public and private players, it is possible to unlock enormous value from existing assets.
Crucially, this reform also symbolizes a deeper change in mindset—from dependency to self-determination. It says to the world, and to Nigerians themselves, that the country is ready to move forward by investing in its own potential and putting its people and industries at the heart of economic development.
