Nigeria: Tinubu's effort to resturcture the ailing oil sector

In Nigeria, President Bola Tinubu is working to revamp the struggling oil sector as national production hits a record low and crude prices plummet following the announcement of new tariffs by Donald Trump. Just a week ago, the Nigerian leader dismissed several top executives from the national oil company, NNPC, and on Wednesday, the federal government declared that local refineries would be allowed to continue purchasing crude oil in the local currency.

The policy allowing the sale of crude oil and refined products in naira on the Nigerian market "remains in effect and will continue as long as it aligns with public interest and supports national economic goals," stated a release from the Nigerian Ministry of Finance on April 9.

The "Naira for Crude" initiative aims to "promote local refining, enhance energy security, and reduce reliance on foreign currency in the domestic oil market," the statement further emphasized.

In recent weeks, a standoff had developed between the national oil company, NNPC, and billionaire Aliko Dangote, who operates a massive refinery in Lagos.

Forced to pay for crude oil in dollars, the tycoon halted the sale of his fuel on the local market, leading to a spike in gasoline prices in Nigeria in recent days.

The federal government's shift on this issue follows the dismissal of eleven NNPC leaders last week by President Bola Tinubu.

Ahmadu Musa Kida has been appointed as the new chairman of NNPC, with Bayo Bashir Ojulari taking over as the new managing director.

This intervention is being portrayed as crucial for revitalizing the declining national oil production and restoring the credibility of the state-owned enterprise, which has been marred by allegations of corruption.