Tax Expert Explains Why Naira-for-crude Policy is Best for Nigeria's Economy
A tax analyst, Aderonke Atoyebi, has described the Federal Government’s Naira-for-Crude policy as a transformative step toward reclaiming Nigeria’s economic sovereignty and stabilising its foreign exchange market.
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In a detailed analysis, Atoyebi praised the policy, formally inaugurated in October 2024, as a common-sense approach to utilising Nigeria’s crude oil resources without depending on the U.S. dollar for domestic transactions.
Source: UGC
“It’s about making Nigeria act like a country that owns oil,” she said. “Sell our crude oil to local refineries in Naira. Refine it. Sell the products within Nigeria, still in Naira. Not dollars. Not IOUs. Actual Naira transactions.”
The naira-for-crude ends fuel imports
The policy, approved by the Federal Executive Council and implemented by the Nigerian National Petroleum Company Limited (NNPCL), seeks to allocate crude oil to domestic refineries while reducing pressure on the country’s foreign reserves.
It is part of wider economic reforms introduced following the removal of the fuel subsidy by President Bola Ahmed Tinubu’s administration.
In October 2024, NNPCL began supplying 385,000 barrels of crude daily to the Dangote Refinery under the policy, with payments denominated in Naira.
She noted that this marks a decisive departure from a system where Nigeria spent billions annually subsidising fuel while importing refined products it could produce locally.
“We have been doing things the hard way for too long, buying back what we produce and spending dollars we don’t have,” she said. “This new policy is Nigeria finally saying, ‘Let us fix this from inside.’”
A central Implementation Committee led by the Federal Inland Revenue Service (FIRS) oversees the policy rollout, with Dr Zacch Adedeji heading its Technical Sub-Committee.
It oils local refineries in line with PIA
The framework is guided by four key principles: Naira-based crude sales, local refinery prioritisation, CBN-determined exchange references, and streamlined port clearances through a One-Stop Shop managed by the Nigerian Ports Authority.
According to Atoyebi, the strategy is not only meant to “ease the burden on our economy” but also to foster a business-friendly environment that encourages investment and energy independence.
“It reduces the pressure on the dollar, helps us save our foreign reserves, and makes room for a more stable financial system,” she said.
“For everyday Nigerians, the goal is to ensure fuel is more available, reduce how much we rely on imports, and secure our energy needs in a way that works for us.”
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She added that the Naira-for-Crude model will enhance market competitiveness by curbing monopoly powers and creating a pricing system that benefits consumers.
“This policy is a blueprint for the future,” Atoyebi concluded. “By changing how we handle our resources, we are taking back control. It’s time for Nigeria to move from just managing to thriving. We are doing it big, no going back.”
FG gives orders to NNPC, NMDPRA to restart naira-for-crude
Legit.ng earlier reported that the Federal Executive Council (FEC) has officially directed the complete application of the collapsed naira-for-crude agreement with local refineries.
The Ministry of Finance revealed this on its X handle as it provided an update on the crude and refined product sales in the naira scheme on Wednesday, April 9, 2025.
Legit.ng earlier reported that the first phase of the naira-for-crude deal between the Nigerian government, the Nigerian National Petroleum Company Limited (NNPC), and the Dangote Refinery elapsed on March 31, 2025.
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Source: Legit.ng
