The Federal Government of Nigeria has commenced the sales of crude oil and refined petroleum products in naira instead of foreign currencies.
This was disclosed in a statement by the Director of the Information and Public Relations, Ministry of Finance, Mohammed Manga.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Saturday said that in line with the Federal Executive Council (FEC) directive, the sale of the products in naira commenced on October 1.
This decision aims to strengthen the naira and reduce the pressure on Nigeria’s foreign exchange reserves.
The new policy comes as the nation grapples with a weakening naira and economic challenges.
According to officials, selling crude oil in naira will encourage oil companies operating in Nigeria to hold more of the local currency, thereby reducing demand for foreign currencies like the US dollar.
The policy is expected to stabilize the naira and create more liquidity in the foreign exchange market.
This move aligns with President Bola Tinubu’s economic reforms, aimed at boosting the local economy, including addressing the volatility of the naira in the forex market.
However, experts have raised concerns over the long-term sustainability of the policy, considering global oil markets predominantly trade in US dollars.
