Naira Crude Sales Boost Local Refineries, Cut FX Risks – Tinubu
The Federal Government has announced that the introduction of crude oil sales in Naira is a strategic move aimed at enhancing the operational efficiency of local refineries by reducing foreign exchange risks and transaction costs. President Bola Tinubu disclosed this on Tuesday while declaring open the eighth edition of the Nigeria International Energy Summit (NIES) in Abuja.
The 2025 summit, themed “Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential,” brought together key stakeholders in the global energy sector. Represented by the Minister of State for Finance, Dr. Doris Uzoka-Anite, Tinubu emphasized that the initiative would foster a stronger and more stable domestic market while making petroleum products more affordable for Nigerians.
“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 added that the initiative is expected to result in more affordable petroleum products for citizens, ultimately improving their standard of living and stimulating economic growth. “This is also going to alleviate the effects of the fuel subsidy removal,” Tinubu noted.
The President highlighted that 2025 has been a year of transformative initiatives and significant milestones in Nigeria’s oil and gas sector. He pointed out that his administration has remained resolute in driving reforms, including the removal of fuel subsidies and forex liberalization, which have liberalized the economy and positioned Nigeria as an investment destination of choice.
Tinubu also underscored Nigeria’s selection as the host country for the headquarters of the African Energy Bank, describing it as a historic milestone that reaffirms the nation’s leadership in Africa’s energy landscape. “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, ensuring a brighter, more prosperous future for all Nigerians and Africans,” he said.
The President further highlighted key achievements in the sector, including increased crude oil production due to strategic interventions in security, development, and investment incentives. He noted that the inauguration of the Presidential Executive Order on Oil and Gas Sector Reforms has streamlined processes, fast-tracked licensing rounds, and encouraged indigenous participation, fostering local content development.
Tinubu expressed determination to complete and operationalize key gas infrastructure projects, such as the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project, which will strengthen Nigeria’s capacity to supply clean energy to industries and households. He also mentioned the implementation of the Presidential Compressed Natural Gas (CNG) Initiative, which is transforming the transportation sector by reducing dependence on a single source of fuel.
The President revealed that the administration is implementing comprehensive reforms in fiscal and tax policies to create a more business-friendly environment and attract both local and international investments. “By simplifying tax regulations, offering incentives, and ensuring a more transparent and predictable fiscal framework, the reforms aim to remove barriers to entry and support the growth of businesses in Nigeria,” he said.
Tinubu also announced that the Port Harcourt and Warri refineries are set to come on stream, increasing Nigeria’s refining capacity and enabling the delivery of petroleum products at a cheaper cost to citizens. Additionally, he disclosed that the government is developing a hydrogen policy to attract investors and integrate hydrogen into the nation’s energy mix.
The NIES 2025 summit serves as a platform for global energy stakeholders to explore opportunities in Africa’s energy sector, with Nigeria positioning itself as a key player in driving sustainable development and economic growth across the continent.
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