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 and aide to the Executive Chairman of the Federal Inland Revenue Service (FIRS).

In a detailed opinion published recently, 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.

She said:

“For decades, we watched as our crude oil left Nigerian shores only to return as expensive imported fuel,” she wrote. “We lost value and billions of dollars in foreign exchange every year. That cycle had to end.”

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. “More than 48 million barrels of crude oil have been supplied to local refineries and paid for in naira,” she revealed. “Monthly supply schedules are now in use, helping refineries plan better and avoid disruptions.”

She added that a One-Stop Shop process introduced 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,” Atoyebi noted.

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

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, Atoyebi revealed.

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,” she stated.

Legit.ng earlier reported that the Chairman of the Technical Sub-Committee, Zacch Adedeji, said the naira-based crude oil supply arrangement with local refineries has not been discontinued.

Adedeji dismissed reports that the policy has been discontinued, forcing the domestic refineries to rely solely on international crude purchases.

He said the reports do not reflect the realities of the ongoing work under the Federal Executive Council Initiative on Domestic Sales of Crude Oil and Refined Products in Naira.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: Legit.ng