President Tinubu
Bolatito Mercy
Nigeria’s Naira-for-Crude policy has been a game-changer in shielding the country from fuel shocks, particularly amidst global disruptions caused by the US-Israel-Iran conflict. The policy allows local refineries to purchase crude oil in naira, reducing exposure to forex volatility and enabling them to supply diesel at more stable prices.
The Dangote Refinery, a major beneficiary of this policy, has played a central role in prioritizing domestic supply while exporting refined products to other African countries. This has helped Nigeria avoid fuel scarcity and even reduced petrol prices by ₦75 per litre.
The policy preserves foreign exchange, creates jobs, and shields the economy from global shocks, making local refining a key pillar of energy sovereignty and sustainable growth. Industry players welcome the policy, citing its potential to boost domestic refining, stabilize fuel prices, and reduce pressure on operators.
The Federal Government has renewed the Naira-for-Crude deal, indicating its commitment to supporting sustainable local refining and bolstering energy security. This move is expected to reduce strain on the US dollar and guarantee price stability of petroleum products.
The policy has already shown positive results, with over 48 million barrels of crude oil supplied to local refineries and paid for in naira. Monthly supply schedules are now in use, helping refineries plan better and avoid disruptions.
Nigeria’s external reserves have also benefited from the policy, increasing by $510 million in 22 days, moving from $45.502 billion on December 31, 2025, to $46.012 billion on January 22, 2026.
The Naira-for-Crude policy is a strategic move towards building an economy that focuses on local production, stable systems, and better opportunities for Nigerians. By prioritizing local refining, Nigeria can reduce dependence on imported petroleum products and strengthen its energy security.
Overall, the policy has been instrumental in shielding Nigeria from fuel shocks and promoting energy sovereignty.
