The Presidency has declared that President Bola Tinubu’s naira-for-crude policy has transformed Nigeria into a resilient and energy-independent nation, shielding the country from the worst effects of the ongoing global energy crisis triggered by the escalating conflict in the Middle East.
In a statement issued on Wednesday, Temitope Ajayi, Senior Special Assistant to the President on Media and Publicity, said the initiative, which was approved in July 2024 and launched on October 1, 2024, has proven to be a strategic breakthrough at a time when major economies across the world are grappling with fuel shortages and soaring energy costs.
Ajayi noted that the conflict between Iran, Israel, and the United States, now in its sixth week, has created economic chaos globally, with Iran’s closure of the Strait of Hormuz dealing a severe blow to international oil and gas supplies.
“The disruption of this vital waterway has sent shockwaves through energy markets worldwide. Across Europe, the United States, Asia, Africa, and the Middle East, prices for LPG, LNG, PMS, and diesel have skyrocketed, placing enormous pressure on households and governments alike,” Ajayi said.
He observed that while petroleum product prices have also increased in Nigeria, as is the case in other countries, the country has not experienced the acute scarcity now being witnessed in many nations.
“Unlike in major countries where people are standing in long queues for days at gas stations, Nigeria has maintained steady supply. Many countries in Europe, Asia, and major African countries, such as South Africa and Kenya, now rely on supplies from Nigeria through the Dangote Refinery,” he said.
The presidential aide credited the naira-for-crude framework, overseen by a technical committee comprising the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Executive Chairman of the Nigerian Revenue Service, Zacch Adedeji, among others, for ensuring that the initiative continues to deliver on its core objectives.
“Since its inception, the Federal Government has developed a robust framework that has ensured the Presidential initiative continues to deliver on its core objectives by maintaining supply security, stabilising the economy, and safeguarding Nigeria’s energy future,” Ajayi said.
He highlighted that the Dangote Refinery, which began production of Premium Motor Spirit (PMS) in October 2024, has played a pivotal role in insulating Nigeria from the global supply crisis.
“By scaling up production at a critical time before the escalation of the conflict, the refinery has met Nigeria’s refined products requirements. Even in the face of more attractive export options, the Dangote Refinery committed to prioritising Nigeria’s energy security. This commitment has ensured full availability of petroleum products with zero queues, while other countries grapple with scarcity,” Ajayi said.
He pointed to the refinery’s recent decision to cut petrol prices by 75 naira per litre, despite a 10 percent increase in crude oil prices and an additional premium of up to $18 per barrel that the refinery pays for Nigerian crude cargoes.
“This is the benefit of local refining,” Ajayi stated.
The presidential spokesperson noted that the Dangote Refinery is transforming Nigeria into a more resilient and energy‑independent nation, providing year‑round availability of petroleum products and enabling the country to withstand external shocks better.
“Petrol queues, even during festive seasons, have disappeared since the refinery commenced PMS production in October 2024. What is perhaps not visible to many Nigerians is how this was achieved while simultaneously eliminating the huge demurrage bill that NNPC used to incur in maintaining safety stock on several floating vessels,” he said.
Ajayi also highlighted Nigeria’s emerging role as a strategic exporter to the African continent, noting that the ongoing crisis has positioned the country as a credible partner for African governments seeking more resilient energy supply arrangements.
“Since the conflict began, the Dangote Refinery has ramped up exports to Africa in a bid to help shore up supply across the continent. In March, the refinery exported close to 500,000 tons of refined products to various African countries, generating export earnings for Nigeria,” he said.
He cited examples of countries struggling with the global energy crisis, including Vietnam, where authorities are encouraging people to work from home to reduce transportation costs; Thailand, which has ordered civil servants to conserve energy in public buildings; and Bangladesh, which closed universities early for a holiday and imposed daily limits on fuel sales.
“Pakistan has implemented emergency measures, including a four-day government work week and temporary school closures, to conserve energy. Indian restaurants are closing their doors due to LPG scarcity. In Egypt, shops and restaurants are mandated to close by 9 pm every day as part of the government’s exceptional measures to combat soaring energy prices. In the Philippines, the government has declared a national energy emergency. In parts of the United States, Americans join long queues to buy fuel,” Ajayi said.
He contrasted these situations with Nigeria’s experience, attributing the country’s stability to President Tinubu’s foresight in approving the naira-for-crude policy.
“President Bola Tinubu demonstrated foresight in July 2024, when he approved the use of the naira as the payment currency for crude oil supplied by the NNPC to the Dangote Refinery,” Ajayi said.
He concluded by emphasising that the Dangote Refinery is more than an industrial asset, describing it as the foundation of Nigeria’s energy sovereignty and a catalyst for sustainable economic growth.
“Not only does local production create and sustain jobs for thousands of people, preserve foreign exchange, and stimulate other sectors of the economy, but more importantly, as we have seen, it insulates the country from global volatility, supply disruptions, and geopolitical risks that continue to batter import-dependent economies in times of stress,” Ajayi said.
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