President Bola Tinubu’s naira-for-crude initiative has reportedly insulated Nigeria from the severe fuel scarcity hitting major economies worldwide amid the ongoing Iran-Israel-US conflict, the Presidency stated on Wednesday.
According to the Senior Special Assistant on Media and Publicity, Temitope Ajayi, the policy, approved in July 2024 and launched on October 1, 2024, has ensured uninterrupted petroleum product supply in Nigeria. Meanwhile, countries across Europe, Asia, and Africa face acute shortages and long fuel queues due to the six-week-old conflict and Iran’s closure of the Strait of Hormuz—a critical corridor that channels over 20 per cent of global oil and gas flows.
Ajayi highlighted that while fuel costs have increased domestically, Nigeria has avoided the supply disruptions seen elsewhere. He cited countries like Vietnam, Bangladesh, Pakistan, Egypt, the Philippines, and the United States, which are implementing emergency measures, restricting fuel consumption, or facing long queues at gas stations.
The Dangote Refinery in Lekki, Lagos, has been central to the policy’s success. By ramping up production and prioritising domestic energy security over lucrative export options, the refinery has eliminated petrol queues even during peak periods. Ajayi noted that despite a 10 per cent global crude price hike, the refinery recently cut petrol prices by N75 per litre, while paying an extra premium of up to $18 per barrel for Nigerian crude.
The naira-for-crude framework, overseen by a technical committee chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and including the Executive Chairman of the Nigerian Revenue Service, Zacch Adedeji, ensures stable supply while reducing pressure on foreign exchange reserves.
In addition to domestic benefits, the Dangote Refinery has strengthened Nigeria’s position as a strategic exporter to Africa. In March 2026 alone, it exported close to 500,000 tons of refined products, supplying countries such as South Africa and Kenya and generating significant foreign exchange earnings.
Ajayi described the refinery as “more than an industrial asset,” calling it “the foundation of Nigeria’s energy sovereignty and a catalyst for sustainable economic growth.”
He concluded that the naira-for-crude policy and domestic refining capacity have made Nigeria more resilient, energy-independent, and capable of withstanding external shocks, unlike other major economies currently grappling with fuel scarcity.
