Uche Cecil Izuora
The Technical Committee overseeing the Naira-Crude policy is currently driving
already established robust framework to sustain supply security, stabilise the economy, and safeguard Nigeria’s energy future.
The Committee includes the Minister of Finance, Wale Edun, and the Executive Chairman of the Nigerian Revenue Service (NRS), Zacch Adedeji.
Mr Temitope Ajayi, Senior Special Assistant on Media and Publicity to the President, confirmed in an article titled “Middle-East Crisis: How Tinubu’s Policy of Naira-for-Crude Guarantees Supply Security in Nigeria,” highlighting the policy’s strategic impact since its introduction.
According to him, President Bola Tinubu’s naira-for-crude policy has ensured Nigeria’s energy security amid the ongoing Middle-East crisis, a presidential aide has said.
Ajayi said the President demonstrated foresight in July 2024 by approving the use of the naira as payment for crude oil supplied by NNPC Limited to local refiners.
He noted that since the initiative’s launch on Oct. 1, 2024, Nigeria had recorded a strategic breakthrough despite global economic turmoil triggered by the Middle-East conflict.
He said the ongoing conflict involving the United States, Israel, and Iran had entered its sixth week, triggering widespread global economic disruptions.
He noted that Iran’s closure of the Strait of Hormuz, a major global energy corridor, had disrupted over 20 per cent of global oil and gas flows.
“This disruption has sent shockwaves through global energy markets, leading to rising prices of petroleum products across continents.”
Ajayi said countries across Europe, Asia, Africa, and the U.S. are experiencing severe energy shortages, rising fuel costs, and mounting economic pressure.
He listed emergency measures adopted globally, including reduced workdays, remote working, early school closures, and restrictions on fuel consumption.
According to him, in spite of the rising global prices, Nigeria has avoided domestic fuel scarcity due to increased local refining capacity.
Nigeria infrastructure updates
He said the Dangote Refinery had played a critical role in shielding Nigeria from the worst effects of the global supply crisis.
“The refinery has met Nigeria’s refined product needs, ensuring availability without queues, even as other countries grapple with shortages.”
He added that the refinery prioritised domestic supply despite more lucrative export opportunities in the international market.
Ajayi noted that although global crude prices had increased, the refinery had taken steps to cushion the impact on Nigerians.
“For instance, despite rising crude prices, petrol prices were reduced by N75 per litre, reflecting the benefits of local refining.”
He said the refinery had continued to operate despite paying higher premiums for crude oil, underscoring its commitment to national energy security.
Ajayi added that the initiative had eliminated persistent fuel queues and reduced demurrage costs previously incurred by maintaining offshore fuel reserves.
He said Nigeria had also emerged as a key supplier of refined petroleum products to other African countries amid the global supply crunch.
“In March alone, the refinery exported nearly 500,000 tonnes of refined products across Africa, generating export earnings.”
The presidential aide said the development underscored the importance of local production, industrialisation, and energy self-sufficiency for long-term economic stability.
He described the Dangote Refinery as a cornerstone of Nigeria’s energy sovereignty and a catalyst for sustainable growth.
Nigeria infrastructure updates
According to him, local refining not only preserves foreign exchange and creates jobs but also insulates the economy from global volatility and geopolitical risks.