In a bold move to curb soaring petrol prices and ease pressure on the naira, the Federal Government has joined forces with Dangote Refinery and the Nigeria Export Processing Zones Authority (NEPZA) to implement a naira-denominated crude oil sales framework for local refineries.
The Federal Government, Dangote Refinery, and the Presidential One-Stop-Shop Committee on Naira Crude Sales unveiled their tripartite partnership on Tuesday during a strategic visit to NEPZA’s Managing Director, Olufemi Ogunyemi, in Abuja.
Turning Point for Energy Policy
Firstly, this partnership signals a significant shift in Nigeria’s energy strategy, aiming to end dollar-based crude transactions in the domestic market.
Following President Bola Tinubu’s directive, the move aims to crash petrol prices, cut down fuel import dependence, and boost economic stability.
“The refinery is not only a national pride but also a fully functioning Free Zone enterprise,” Ogunyemi said. “Now, with this naira-for-crude policy, we are taking a decisive step toward energy affordability and self-sufficiency.”
Rising Pump Prices Spark Urgent Reforms
Notably, the agreement comes amid sharp increases in pump prices nationwide.
Due to rising global oil prices following the Israel-Iran crisis, petrol now sells for ₦915 per litre in Lagos and ₦955 in Abuja.
Despite a brief ceasefire, the landing cost of imported fuel remains high, leaving consumers burdened.
Consequently, the government is turning to local solutions.
By enabling naira-based crude sales to functional domestic refineries like Dangote, stakeholders believe Nigeria can finally insulate fuel pricing from international forex volatility.
Dangote Refinery Steps Up
Moreover, the 650,000 barrels-per-day Dangote Refinery, located in the Lekki Free Zone, is already producing various fuel types petrol, diesel, aviation fuel, and kerosene.
With 480 vessels delivered so far, the refinery is positioned to meet domestic demand while supplying export markets.
According to Ogunyemi, NEPZA has supported the refinery’s journey and remains committed to ensuring its success in this new national role.
“The goal is to fully utilise Dangote Refinery’s capacity for economic recovery and consumer relief,” he added.
Presidential Committee Coordinates Rollout
The Federal Government’s One-Stop-Shop Committee took charge to simplify and coordinate crude-for-naira transactions.
Led by Maureen Ogbonna, the committee includes key players from regulatory and security agencies, ensuring streamlined execution.
Ogbonna described the initiative as a landmark move by the Tinubu administration. She stated that Nigeria would eventually carry out all local crude sales in naira, a shift she said would boost investor confidence and reduce pressure on the country’s foreign reserves.
Refinery Ready to Deliver
Meanwhile, Dangote Refinery has expressed full commitment to the initiative.
Representing the company, Akinsanya Mobolarin said, “Our chairman, Alhaji Aliko Dangote, is deeply invested in Nigeria’s progress.
This initiative aligns with our mission to support energy security and drive industrialisation.”
He added that the naira-for-crude model would help stabilise fuel prices, stimulate local industry, and reduce the impact of global oil market shocks.
Analysts Applaud Strategy
In addition, energy analysts say the new model is long overdue. “This policy could change the face of Nigeria’s downstream sector,” said industry expert Nneka Obi. “But for it to succeed, crude supply agreements must be transparent and consistent.”
Ultimately, the alliance between NEPZA, Dangote Refinery, and the Federal Government marks a crucial move toward localising Nigeria’s energy value chain. If executed properly, the naira-for-crude strategy could, in the long run, ease consumer burdens, strengthen the naira, and bring about much-needed stability in petrol pricing nationwide.
