The Federal Government has described the introduction of crude oil sales in Naira as a strategic measure aimed at enhancing the efficiency of local refineries while minimizing foreign exchange risks and transaction costs.
President Bola Tinubu made this known on Tuesday at the opening of the 8th edition of the Nigeria International Energy Summit (NIES 2025) in Abuja.
The summit, themed ‘Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential’, brought together key industry players and investors.
Represented by the Minister of State for Finance, Dr. Doris Uzoka-Anite, Tinubu emphasized that the policy also fosters a more stable domestic market.
“In order to ensure that the local refineries are very competitive, thereby lowering the cost of the retail price of petroleum products for our populace, we introduced the sale of crude oil in Naira. By denominating crude sales in Naira, we are supporting the local currency and creating a more resilient economy.”
He further explained that the initiative is expected to make petroleum products more affordable, improving citizens’ living standards while driving economic growth.
“This initiative is expected to result in more affordable petroleum products for our citizens, ultimately improving their standard of living and stimulating economic growth. This is also going to alleviate the effects of the fuel subsidy removal,” the President stated.
Reflecting on the nation’s energy progress in 2025, Tinubu noted that Nigeria is undergoing a transformation in the oil and gas sector, marked by key reforms and significant milestones.
Over the past two years, his administration has focused on critical reforms, including the removal of fuel subsidies and the liberalization of foreign exchange, positioning Nigeria as a prime destination for investors.
Among the notable achievements, Tinubu highlighted Nigeria’s selection as the host country for the African Energy Bank, a landmark development that cements the country’s leadership in Africa’s energy sector.
“By securing this prestigious institution, we have positioned Nigeria as the hub for energy financing, fostering investment, innovation, and job creation. This milestone underscores our dedication to energy security, economic growth, and regional cooperation, ensuring a brighter, more prosperous future for all Nigerians and Africans.”
The President noted that the issuance of strategic executive orders has spurred renewed investments in the oil and gas sector.
“We have also issued far-reaching executive orders that have seen a return of investment into our oil and gas sector. In the upstream sector, we have witnessed increased crude oil production owing to strategic interventions in security, development, and investment incentives,” he said
Additionally, he pointed out that the Presidential Executive Order on Oil and Gas Sector Reforms has streamlined processes, accelerated licensing rounds, and encouraged greater indigenous participation, strengthening local content development.
“We have seen increasing investment announcements and innovative ways to support the oil and gas sector, and we are open to receiving more of such exciting announcements,” the President noted.
Tinubu reaffirmed his administration’s commitment to completing key gas infrastructure projects, including the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, which will expand access to clean energy for industries and households.
He also underscored the impact of the Presidential Compressed Natural Gas Initiative,which is reshaping Nigeria’s transportation sector by reducing reliance on a single fuel source, stating, “We are actively developing a hydrogen policy to attract investors and integrate hydrogen in our energy mix.”
Furthermore, the President highlighted ongoing fiscal and tax policy reforms aimed at fostering a more business-friendly environment to attract both local and international investments.
By simplifying tax regulations, offering incentives, and ensuring transparency, the government aims to create a more predictable framework for businesses to thrive.
With the Port Harcourt and Warri refineries coming back on stream, Nigeria now has an increased capacity to refine crude oil domestically, ensuring that petroleum products reach consumers at more affordable prices.
“With the coming on stream of the Port Harcourt and Warri refineries, the country had more refining capacity to process crude and also deliver these products at a cheaper cost to Nigerians.”
Tinubu’s address at NIES 2025 reaffirmed his administration’s commitment to sustainable energy policies, economic growth, and positioning Nigeria as a global player in the energy sector.
