Nigeria Launches Naira-for-Crude Oil Sale Agreement with Dangote Refinery

Abuja, Nigeria – The Nigerian government has officially launched its Naira-for-crude oil sale agreement with Dangote Refinery, marking a significant step towards stabilizing the economy and promoting local currency usage in the oil sector.

The announcement was made by the Minister of Finance, Wale Edun, in a statement shared on the Ministry of Finance’s official X account on Saturday. Edun emphasized that the initiative aligns with the directive from the Federal Executive Council (FEC), which approved the sale of crude oil and refined petroleum products in Naira.   

A post-commencement review meeting was held on October 3, 2024, to assess the initial implementation of the agreement. Key stakeholders, including representatives from the Ministry of Finance, the Ministry of State for Petroleum (Oil), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Dangote Group, and the Nigerian National Petroleum Company (NNPC), participated in the meeting.

Edun noted that the initiative aims to stabilize the Nigerian economy and enhance the use of the local currency in the oil sector. While the announcement has generated optimism, concerns remain about the operational effectiveness of the deal post-launch.

Petroleum marketers and industry analysts have suggested that the Naira-for-crude oil agreement could lead to a reduction in fuel pump prices. By easing currency pressures and promoting local sales, the deal may benefit Nigeria’s energy supply chain and overall economic stability.