The Federal Executive Council (FEC) has formally directed the full implementation of the Naira-for-Crude policy, aimed at encouraging local refining and reducing Nigeria’s dependence on foreign exchange for petroleum products.
This was disclosed by the Ministry of Finance in a post on its official X handle on Wednesday, titled “Update on the Crude and Refined Product Sales in Naira Initiative”.
NNPC Clarifies Naira Crude Oil Agreement with Dangote Refinery
The directive follows the expiration of the initial six-month pilot phase of the agreement involving the Federal Government, the Nigerian National Petroleum Company Limited (NNPC), and the Dangote Petroleum Refinery.
The pilot phase ended on March 31, 2025, and was not renewed, prompting the Dangote refinery to suspend sales of refined products in naira.
Naira-Based Crude Oil Supply Arrangement Remains Intact-Adedeji
However, the latest statement clarifies that the initiative is not a short-term arrangement but a long-term strategic policy.
“The Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative convened an update meeting on Tuesday to review progress and address ongoing implementation matters,” the statement said.
It added: “The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council.
Thus, the Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
The initiative, first introduced in 2024, was developed to stabilize the naira, conserve forex reserves, and incentivize local refiners to operate more efficiently and competitively.