Presidency has said Nigeria’s naira-for-crude policy is protecting the country from severe fuel supply shocks from the ongoing Middle East crisis.

The Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, yesterday, said the initiative introduced by President Bola Tinubu had ensured steady petroleum products despite growing global supply disruptions.

According to Ajayi, the policy, approved in July 2024, enables the Dangote Refinery to pay for crude oil supplied by the Nigerian National Petroleum Company Limited in naira, thereby strengthening domestic refining and reducing Nigeria’s exposure to foreign exchange pressures.

He said the initiative, which took effect on October 1, 2024, was being driven by a technical committee led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, alongside the Executive Chairman of the Nigerian Revenue Service, Zacch Adedeji, among other key stakeholders.

He explained that the policy had provided a critical buffer as the conflict involving Iran, Israel and the United States continued to disrupt global energy markets.

Ajayi pointed out that the situation worsened following Iran’s closure of the Strait of Hormuz, a major maritime route responsible for over 20 per cent of global oil and gas flows.

“The disruption has triggered a sharp rise in global energy prices, placing immense pressure on many economies, particularly import-dependent countries,” he said.

Despite the global surge in fuel prices, the Presidential aide stressed that Nigeria had avoided the acute shortages seen in several parts of the world.

He attributed this stability to the operational capacity of the Dangote Refinery, which he said had met domestic demand and positioned Nigeria as a key supplier of refined petroleum products to other African countries, including South Africa and Kenya.

Ajayi further noted that the global crisis had exposed the vulnerabilities in countries that rely heavily on imported refined products, with many now experiencing supply chain disruptions and emergency energy measures.

He also highlighted efforts to cushion Nigerians against the impact of rising global oil prices, noting that the refinery recently reduced petrol prices by N75 per litre despite higher crude procurement costs.

According to him, Nigeria is also leveraging the refinery’s capacity to support regional energy needs, with nearly 500,000 tonnes of refined products exported to African countries in March alone.