From Victor Osula, Abuja
The Federal Government has said the naira-for-crude initiative with local refineries is not a temporary measure but a “key policy directive designed to support sustainable local refining”.
Introduced on October 1 2024, the deal allowed local refiners to purchase crude oil in Naira instead of dollars. The initiative was designed to support domestic refining capacity, reduce reliance on imported petroleum products, and stabilise the local currency by easing pressure on foreign exchange reserves.
The Dangote Refinery had, on March 19, announced the temporary suspension of the sales of petroleum products in Naira after the Nigerian National Petroleum Company (NNPC) said the deal with the local Refinery, initially structured for six months, expired in March 2025.
Speaking on Tuesday at a meeting with representatives of Dangote Refinery, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the naira-for-crude deal is a policy directive of President Bola Tinubu’s administration to support sustainable local refining and remained in effect.
In a statement on Wednesday, the Ministry of Finance said the Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative met on Tuesday to review progress and address ongoing implementation matters.
The meeting reaffirmed the government’s continued commitment to the full implementation of the Naira-For-Crude initiative, as directed by the Federal Executive Council (FEC).
They emphasised that “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.
“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time. However, such issues are being actively addressed through coordinated efforts among all parties.
“The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives.”
The meeting was attended by Edun, the Chairman of the Implementation Committee; the Chairman of the Technical Sub-Committee and Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji; the Chief Financial Officer of NNPCL, Dapo Segun; the Coordinator of NNPC Refineries; Management of NNPC Trading; representatives of Dangote Petroleum Refinery and Petrochemicals.
Others at the meeting include senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), representative of Afreximbank, as well as the Secretary of the Committee, Hauwa Ibrahim.
