The Presidency has defended President Bola Tinubu’s naira-for-crude policy, describing it as a strategic intervention that has helped Nigeria maintain fuel supply stability amid a worsening global energy crisis triggered by the ongoing Middle East conflict.
In a State House press release authored by Temitope Ajayi, the initiative approved in July 2024 was credited with ensuring energy security by allowing the Nigerian National Petroleum Company Limited to supply crude oil to the Dangote Refinery in naira.
“President Bola Tinubu demonstrated foresight in July 2024, when he approved the use of the naira as the payment currency for crude oil supplied by the NNPC to the Dangote Refinery,” Ajayi stated.
He added that since the policy took effect on October 1, 2024, Nigeria has recorded “a strategic breakthrough” despite global disruptions linked to the Iran-Israel-US conflict.
According to the statement, a technical committee comprising key officials, including Finance Minister Wale Edun and Zacch Adedeji, has developed a framework to sustain the policy’s objectives.
Ajayi noted that the global crisis has intensified following Iran’s reported closure of the Strait of Hormuz, a critical oil transit route, leading to sharp increases in energy prices worldwide.
“The disruption of this vital waterway has sent shockwaves through energy markets worldwide,” he said.
Despite rising global fuel costs, the Presidency maintained that Nigeria has avoided the severe shortages seen in other countries.
“While the cost of PMS and other petroleum products has also gone up in Nigeria the global energy crisis has not led to a domestic scarcity of petroleum products,” Ajayi said.
adding that “full availability of petroleum products with zero queues” has been sustained.
The statement highlighted the role of the Dangote Refinery in cushioning the country from supply shocks, noting that the facility has prioritized domestic supply even amid attractive export opportunities.
“Fortunately, the Dangote Refinery has largely shielded Nigeria from the worst effects of the global supply crisis,” Ajayi said.
He further revealed that the refinery recently reduced petrol prices by ₦75 per litre despite rising crude oil costs, describing it as evidence of the benefits of local refining.
“This was done even though the refinery is paying an additional premium of up to $18 per barrel for Nigerian crude oil cargoes. This is the benefit of local refining,” he added.
Ajayi also pointed to broader economic gains, including reduced dependence on imports, elimination of demurrage costs, and increased export earnings. He disclosed that the refinery exported nearly 500,000 tonnes of refined products to African countries in March alone.
“The Dangote Refinery is more than an industrial asset; it is the foundation of Nigeria’s energy sovereignty and a catalyst for sustainable economic growth,” he said.
The Presidency concluded that the naira-for-crude policy has positioned Nigeria as a reliable energy supplier within Africa while strengthening its resilience against global economic shocks.