By Damilare Adeleye
The Presidency has attributed Nigeria’s relative insulation from global fuel supply disruptions to President Bola Tinubu’s naira-for-crude policy, specifically its implementation with the Dangote Refinery.
In an article titled “Middle-East Crisis: How Tinubu’s Policy of Naira-for-Crude,” Temitope Ajayi, Senior Special Assistant to the President on Media and Publicity, explained that the initiative launched on October 1, 2024, has ensured an uninterrupted petroleum supply even as many nations grapple with shortages and long queues.
The Presidential aide acknowledged that the ongoing conflict involving Iran, Israel, and the US has caused global economic chaos, particularly following the closure of the Strait of Hormuz by Iranian authorities. As a critical maritime passage accounting for over 20% of global oil and gas flows, the shutdown of this corridor has disrupted waterway movements and destabilized global energy markets.
Ajayi noted that prices for LPG, LNG, PMS, and diesel have skyrocketed in several countries, placing immense pressure on households and governments.
He emphasized that rising energy costs have intensified economic strain globally, making transportation and basic goods increasingly unaffordable in nations with limited resources.
According to Ajayi, President Tinubu demonstrated significant foresight in 2024 when he approved the use of the naira as the payment currency for crude oil supplied by the NNPC to the Dangote Refinery.
He noted that the technical committee on naira-for-crude which includes Minister of Finance Wale Edun and the Executive Chairman of the Nigerian Revenue Service, Zacch Adedeji has developed a robust framework.
This framework ensures the presidential initiative delivers on its core objectives by maintaining supply security, stabilizing the economy, and safeguarding Nigeria’s energy future.
While petroleum prices have risen in Nigeria as they have elsewhere, Ajayi pointed out that the global energy crisis has not led to domestic scarcity.
He contrasted this with major countries in Europe, Asia, and Africa including South Africa and Kenya where citizens face days of long queues at gas stations. Notably, some of these nations now rely on supplies from the Dangote Refinery.
Ajayi asserted that the Lekki-based refinery has validated the strategic importance of local refining capacity for a regional economic powerhouse like Nigeria, especially as the Middle East conflict exposes vulnerabilities in the global supply architecture.
The Presidential aide further highlighted emergency measures adopted by other nations to cope with the crisis.
He cited examples such as Vietnam and Thailand implementing work-from-home and energy conservation orders, Bangladesh and Pakistan closing schools or reducing work weeks, and Egypt mandating early closures for shops and restaurants.
In contrast, he stated that the Dangote Refinery has largely shielded Nigeria by scaling up production and prioritizing national energy security over lucrative export opportunities.
Ajayi concluded by noting that while international crude oil prices have increased by 10% recently, the refinery managed to cut petrol prices by 75 Naira per litre to reduce the impact on Nigerians.
He remarked that the disappearance of petrol queues since October 2024 is a testament to the refinery’s role in transforming Nigeria into a resilient, energy-independent nation.
The Presidential Aide also declared that the Dangote Refinery is more than just an industrial asset, describing it as the foundation of Nigeria’s energy sovereignty and a catalyst for sustainable economic growth.