Economy
Nigeria to Save $7bn FX Annually With Crude Sale in Naira Policy—Adedeji
By Adedapo Adesanya
The Chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji, has said Nigeria would save over $7 billion after President Bola Tinubu directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in Naira.
Speaking on Monday at the State House, after the Federal Executive Council (FEC) meeting, Mr Adedeji said the decision aims to mitigate the heavy reliance on foreign exchange (FX) for crude oil imports, which currently accounts for roughly 30 to 40 per cent of Nigeria’s forex expenditure.
Mr Adedeji further explained that by denominating transactions in Naira, the federal government expects to significantly reduce its forex burden as well as estimated annual savings of around $7.3 billion.
He stressed that this shift will stabilize crude oil prices domestically by minimizing the impact of FX fluctuations.
Mr Adedeji said the new policy is anticipated to ease the pressure on Nigeria’s foreign exchange reserves, reducing monthly forex expenditure on petroleum products to $50 million from approximately $660 million.
He added that as part of the implementation, the Africa Export-Import Bank (Afreximbank) has been selected as the pilot settlement bank to facilitate these transactions.
“He (President Tinubu) has approved through the council that effective immediately, that NNPC get engaged with local refineries and we are starting that with Dangote Refinery. The sales of crude oil to Dangote Refinery are denominated in Naria and also the sales of byproducts from Dangote Refinery to distributors are conducted in naira.
“What does it mean to our economy? One, the pressure on foreign exchange will be reduced.
Mr Adedeji added that “monthly, we spend roughly $660 million in this exercise and if you analyse that will give us $7.92 billion annually.
“With this approval today through FEC, led by Mr President, this has reduced by a minimum of 90 per cent because what we have today, will mean transactions are now done in our local currency, not only with Dangote Refinery, but to all local refineries for all our local consumptions and this will actually stabilise the pump price.
“This will also make economic predictability a reality because we will no longer rely on the fluctuations that happen in forex. This is an innovation that solves our problems as a country today.
“Just to be specific, I’ll just read parts of the benefits. Number one, which is major, is the reduction in foreign exchange pressure, as the existing process that we have today utilises $660 million per month, a total of $7.92 billion annually.
“With the new approval that we have, this will reduce to a maximum of $50 million per month which is annualised to be only $600 million. This is a total reduction of 94 per cent and saving us $7.32 billion.
“This will also reduce finance costs, which today stand at $79 million when you consider the opening letter of credit between those local refineries and what happens.
“Also, as a pilot, Council has approved that a settlement bank, which in this instance is AFREXIM Bank, would be the lead arranger between NNPC and Dangote Refinery.
“So, this is a major innovation in solving Nigeria’s problem permanently. Not only will we have more employment, but we will definitely be in charge of one of the mainstays of our economy,” he stated.
By Dipo Olowookere
The Nigerian equity market showed no signs of slowing down, as it further appreciated by 1.30 per cent on Friday on the back of sustained buying pressure.
Unlike the preceding sessions, investor sentiment was bullish yesterday after the Nigerian Exchange (NGX) Limited ended with 43 price gainers and 26 price losers, implying a positive market breadth index, the first this week.
UPDC gained 10.00 per cent to close at N4.40, Academy Press also appreciated by 10.00 per cent to quote at N7.70, Haldane McCall improved by 9.97 per cent to N3.97, Zichis soared by 9.94 per cent to N15.60, and Wema Bank added 9.84 per cent to settle at N31.25.
Conversely, Meyer lost 9.92 per cent to sell for N16.80, Trans-Nationwide Express also crashed by 9.92 per cent to end at N7.90, C&I Leasing slipped by 8.53 per cent to N5.90, Omatek dipped by 7.34 per cent to N2.02, and eTranzact decreased by 5.28 per cent to N17.05.
When the bourse closed its doors to business, the All-Share Index (ASI) rose by 2,884.81 points to 225,722.49 points from 222,837.68 points, and the market capitalisation grew by N1.858 trillion to N145.335 trillion from N143.477 trillion.
A look at the activity chart showed that market participants transacted 627.6 million shares worth N44.5 billion in 55,232 deals during the trading day compared with the 667.9 million shares valued at N38.1 billion traded in 53,062 deals a day earlier.
This indicated that the volume of transactions went down by 6.03 per cent, the value of trades went up by 16.80 per cent, and the number of deals jumped by 4.09 per cent.
Access Holdings closed the session as investors’ toast, with a turnover of 75.6 million units worth N2.4 billion. UBA transacted 43.1 million units valued at N2.3 billion, Wema Bank exchanged 41.5 million units for N1.3 billion, Zenith Bank traded 38.4 million units valued at N5.2 billion, and Universal Insurance sold 29.5 million units for N35.9 million.
By Aduragbemi Omiyale
Mr Taiwo Oyedele has set some goals he intends to achieve as Nigeria’s Minister of Finance and Coordinating Minister of the Economy.
While taking over from his predecessor, Mr Wale Edun, on Thursday, the tax expert assured that he has no plans to overturn some of the reforms already put in place by the former occupier of the seat.
In a message on Friday, he emphasised that, “Our immediate task is to consolidate these gains, deepen ongoing reforms, and ensure they translate into tangible benefits for all Nigerians.”
He promised to ensure fiscal discipline by embracing transparent and prudent management of public resources, while also harmonising revenue administration, broadening the tax base, reducing the burden on the vulnerable population, and supporting economic growth.
Mr Oyedele further said his other strategic priorities include creating a predictable and investor-friendly environment anchored on policy coherence, consistency, and clarity; and aligning efforts across all tiers and institutions to maximise policy impact.
He also said efforts would be made to deepen collaboration with the private sector and other key stakeholders for data-driven policy design, co-implementation, and feedback for continuous improvement.
According to him, “Good policy design alone is not enough; success will be defined by execution. We are committed to disciplined implementation, accountability, and measurable results.”
“I look forward to working with colleagues across government, the private sector, and all Nigerians as we move from reform to result, accelerate growth and build a more stable, inclusive, and prosperous economy,” he stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange further appreciated by 0.23 per cent on Thursday, April 23, with the Unlisted Security Index (NSI) adding 8.99 points to close at 3,969.96 points against the previous day’s 3,968 points.
The rise in the share price of Central Securities Clearing System (CSCS) Plc by N2.86 to N69.34 per unit from N66.48 per unit raised the market capitalisation of the NASD bourse by N5.38 billion to N2.380 trillion from N2.375 trillion.
Yesterday, there were two price losers, led by Food Concepts Plc, which lost 29 Kobo to sell at N2.65 per share versus N2.94 per share, while UBN Property Plc dipped by 22 Kobo to N2.03 per unit from N2.25 per unit.
During the session, the volume of securities traded declined by 97.9 per cent to 451,522 units from 21.5 million units on Wednesday, the value of securities depreciated by 52.32 per cent to N23.6 million from N49.5 million, and the number of deals depreciated by 3.6 per cent to 27 deals from 28 deals.
At the close of business, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by CSCS Plc with 59.5 million units exchanged for N4.0 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion.
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