Naira-for-crude policy marks shift toward homegrown refining – Tax analyst

A new policy that mandates local refineries to pay for domestic crude oil in naira has been described as “one of the smartest and most realistic steps” to fix Nigeria’s oil and gas sector, according to Arabinrin Aderonke Atoyebi, a tax analyst.

In a recent piece, Atoyebi praised the naira-for-crude initiative, describing it as a landmark reform that could reverse decades of dependence on imported petroleum products and excessive foreign exchange exposure.

“For decades, we watched as our crude oil left Nigerian shores only to return as expensive imported fuel.

“We lost value and billions of dollars in foreign exchange every year. That cycle had to end,” she wrote.

The federal government’s policy, aimed at bolstering local refining and conserving foreign reserves, was the focus of a recent meeting of the Technical Sub-Committee on Domestic Crude Sales in Naira (ICONS).

The high-level meeting, chaired by FIRS chief Dr. Zacch Adedeji, brought together senior stakeholders, including Finance Minister Wale Edun, the Central Bank of Nigeria (CBN), the Nigerian National Petroleum Company Limited (NNPC), Dangote Refinery, and several key regulatory bodies.

According to Atoyebi, the results so far are encouraging, she said, “More than 48 million barrels of crude oil have been supplied to local refineries and paid for in naira. Monthly supply schedules are now in use, helping refineries plan better and avoid disruptions.”

She added that the introduction of a One-Stop Shop process to streamline approvals is helping to improve regulatory clarity and stakeholder efficiency.

“This is how reform should work: with regulators and operators facing each other, not avoiding one another.

“For once, the silence between agencies is being filled with coordination,” Atoyebi noted.

Industry observers see the involvement of Dangote Refinery, a multibillion-dollar facility capable of refining 650,000 barrels per day, as a major milestone.

Atoyebi agreed, stating that its early adoption of the policy “provides an early signal that the policy can work at scale.” The naira-for-crude model, she argued, represents more than a financial arrangement.

“It is a step toward building an economy that focuses on local production, stable systems, and better opportunities for the people of our great nation.”

Linking the policy to President Bola Tinubu’s Renewed Hope agenda, Atoyebi said the initiative exemplifies what is possible when government and industry collaborate.

“The naira-for-crude policy is not just a change in how oil is paid for. It shows that government and industry can work together to solve problems.”

With local refineries now experiencing more stable crude supplies, she concluded, Nigeria is finally charting a path away from petroleum import dependency and toward job-creating domestic value addition.

“This is not just about money. It’s about strengthening our ability to refine oil here at home and keeping more of our resources within our economy,” Atoyebi emphasised.