Naira crude sale reduces FX risks, transaction costs — Tinubu
The Federal Government has stated that the introduction of crude oil sales in Naira is a strategic move aimed at enhancing the operational efficiency of local refineries by reducing foreign exchange risks and transaction costs.
President Bola Tinubu made this announcement on Tuesday, while officially opening the eighth edition of the Nigeria International Energy Summit (NIES 2025) in Abuja. The summit is themed “Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential.”
Represented by Dr Doris Uzoka-Anite, the Minister of State for Finance, Tinubu explained that the initiative had also contributed to a more robust and stable domestic market.
“To ensure that local refineries remain competitive and help lower the retail price of petroleum products for our citizens, we introduced the sale of crude oil in Naira,” Tinubu stated. “By denominating crude sales in Naira, we are supporting the local currency and fostering a more resilient economy.”
He continued: “This initiative is expected to result in more affordable petroleum products for our people, ultimately improving their standard of living and stimulating economic growth. It will also help alleviate the effects of the fuel subsidy removal.”
The President noted that 2025 had seen continued progress in Nigeria’s oil and gas sector, marked by transformative initiatives and significant achievements. He highlighted that his administration had remained steadfast in implementing reforms in both the energy sector and the broader economy for nearly two years.
Tinubu pointed to the removal of the fuel subsidy and the liberalisation of foreign exchange as key reforms that have liberalised the economy, positioning Nigeria as a preferred destination for investment.
Among the major milestones, he highlighted Nigeria’s selection as the host country for the headquarters of the African Energy Bank, a historic achievement that further solidified the country’s leadership in Africa’s energy sector. This accomplishment, he said, underscores Nigeria’s commitment to sustainable development across the continent.
“By securing this prestigious institution, we have positioned Nigeria as the hub for energy financing, fostering investment, innovation, and job creation,” the President remarked. “This milestone highlights our commitment to energy security, economic growth, and regional cooperation, ensuring a brighter, more prosperous future for Nigerians and Africans alike.”
Tinubu also emphasised that executive orders aimed at reforming the oil and gas sector had successfully attracted investment, improved security, and boosted crude oil production through strategic interventions. These reforms have also expedited licensing rounds and encouraged greater indigenous participation, further supporting local content development.
“We have seen increasing investment announcements and innovative approaches to support the oil and gas sector, and we remain open to more of these exciting developments,” he said.
He further expressed the government’s commitment to the completion and operationalisation of key gas infrastructure projects, such as the Ajaokuta Kaduna Kano Gas Pipeline Project, which will enhance the capacity to supply clean energy to industries and households.
Tinubu also highlighted the Presidential Compressed Natural Gas Initiative (P-CNGI), which he said was transforming the transportation sector by reducing reliance on a single fuel source, traditionally petroleum.
The administration is also implementing comprehensive reforms in fiscal and tax policies to create a more business-friendly environment and attract both local and international investments. These reforms are designed to simplify tax regulations, offer incentives, and ensure a more transparent fiscal framework, removing barriers to business growth and stimulating economic prosperity.
Tinubu concluded by announcing that the ongoing upgrades to the Port Harcourt and Warri refineries would increase Nigeria’s refining capacity, making it possible to process more crude oil and provide petroleum products at a lower cost to Nigerians.
“We are actively developing a hydrogen policy to attract investors and integrate hydrogen into our energy mix,” he added.
