Middle East Crisis: Tinubu’s naira-for-crude policy stabilising fuel supply — Presidency

The Presidency has stated that Nigeria’s naira-for-crude policy is helping the country avoid major fuel supply disruptions caused by the ongoing crisis in the Middle East.

The Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, said on Wednesday that the policy introduced under President Bola Tinubu has helped maintain the steady availability of petroleum products despite growing instability in global energy markets.

Ajayi explained that the initiative, approved in July 2024 and implemented from October 1, 2024, allows the Nigerian National Petroleum Company Limited (NNPC) to supply crude oil to the Dangote Refinery with payments made in naira. According to him, the arrangement is aimed at strengthening local refining capacity while reducing pressure on foreign exchange.

He added that the programme is being supervised by a technical committee headed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, alongside the Executive Chairman of the Nigerian Revenue Service, Zacch Adedeji, and other key stakeholders.

The Presidency noted that the policy has become particularly important as the conflict involving Iran, Israel and the United States continues to affect global energy supply chains.

Ajayi said the situation intensified after Iran reportedly closed the Strait of Hormuz, a strategic shipping route through which more than 20 per cent of global oil and gas supplies pass. He noted that the development has pushed up global energy prices and created significant pressure for countries that depend heavily on fuel imports.

Despite the global price increases, Ajayi said Nigeria has so far avoided the severe shortages being experienced in some parts of the world.