Nigeria is set to make a significant change in its oil industry starting October 1st, as the country plans to sell crude oil in its local currency, the naira, to the Dangote refinery. This decision, announced by the finance ministry, is aimed at reducing foreign exchange pressure on Nigeria’s main oil refinery.
The move is a strategic one, as it not only supports the local currency by increasing its demand but also helps to strengthen the country’s economy. By selling oil in naira, Nigeria can better manage its foreign exchange reserves and reduce its dependency on other currencies.
The Dangote refinery, owned by Africa’s richest man Aliko Dangote, is expected to benefit greatly from this new policy. As the largest refinery in Nigeria with a capacity to process 650,000 barrels per day, the refinery plays a crucial role in the country’s oil industry. By purchasing crude oil in naira, the refinery can potentially save on foreign exchange costs, making its operations more cost-effective in the long run.
This decision also highlights Nigeria’s commitment to supporting its local industries and promoting economic growth within the country. By encouraging local production and consumption, Nigeria can reduce its reliance on imports and strengthen its domestic market.
Overall, the decision to sell oil in naira to the Dangote refinery is a positive step towards stabilizing Nigeria’s economy and boosting its oil industry. It will be interesting to see the impact of this policy change on the country’s oil sector and its broader economic landscape in the coming months.
Watch the video by FRANCE 24 English
Video “Nigeria to start selling oil in local currency to Dangote refinery from October • FRANCE 24” was uploaded on 08/22/2024 to Youtube Channel FRANCE 24 English