Nigerian Government Revived Naira-for-Crude Initiative

SEATTLE (Oil Monster): The Federal Ministry of Finance of Nigeria declared the reintroduction of the Crude and Refined Product Sales in Naira program. A recent high-level meeting of the Technical Sub-Committee made the decision. After being suspended for several months, the policy has been reinstated.

Local refiners can buy crude oil using naira rather than foreign money thanks to the naira-for-crude policy. The policy change is a part of the government's attempts to stabilize the nation's local oil-refining industry and support it. According to reports, the ruling has restored hope in the local oil refining industry, particularly for major participants like the Dangote plant.

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Dangote Refinery Temporarily Suspended Oil Sales in Naira

According to the Ministry's statement, the government's decision to continue the project is a long-term policy rather than a short-term fix for the current difficulties caused by the initiative's suspension.

The policy's resuscitation aims to provide energy security, encourage sustainable local refining, and lessen the nation's reliance on foreign exchange in the domestic petroleum market. It should be mentioned that the temporary halt caused interruptions in the fuel supply and increased operating expenses for nearby refineries. Additionally, increased refinery operating expenses led to a nationwide increase in pump prices.