The Federal Executive Council has given the green light for the full implementation of the Naira-for-Crude agreement that was previously suspended with local refiners.
This update was shared by the Ministry of Finance through its official X handle titled “Update on the Crude and Refined Product Sales in Naira Initiative,” on Wednesday.
This announcement follows the end of the first phase of the agreement, which involved the Federal Government, Nigerian National Petroleum Company Limited (NNPC), and Dangote Petroleum Refinery.
The first phase of this six-month deal concluded on March 31, 2025, and since then, the deal has not been renewed, leading to Dangote Refinery stopping the sale of refined petroleum products in naira.
In the recent update, the Ministry clarified that the initiative is not just a temporary fix but rather a long-term strategy designed to reduce Nigeria’s dependence on foreign currency for petroleum transactions. This follows a crucial meeting held on Tuesday to review the progress and address the ongoing issues with the deal.
The statement read, “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 stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council.”
The Ministry emphasized that this initiative is not a short-term project but an essential policy to support sustainable local refining, improve energy security, and reduce Nigeria’s reliance on foreign exchange for domestic petroleum transactions.
READ ALSO: Ibas Appoints Rivers LG Administrators Despite Court Battle
“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 policy focuses on the sale of both crude oil and refined petroleum products in naira, with the goal of strengthening the country’s economic sovereignty, increasing local refining capacity, and stabilizing the foreign exchange market by lowering the demand for dollars in domestic oil transactions.
Additionally, this policy is expected to boost energy security and attract investments into local refining infrastructure.
While the government acknowledges that the transition may bring about some challenges, they assured that these issues are being handled carefully.
“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 statement concluded that the initiative remains active and will continue as long as it serves the public interest and supports national economic goals.
The meeting was attended by several high-ranking officials, including Mr. Wale Edun, the Hon. Minister of Finance and Coordinating Minister of the Economy; Mr. Zacch Adedeji, the Chairman of the Technical Sub-Committee; and Mr. Dapo Segun, the Chief Financial Officer of NNPC Limited.
Also in attendance were representatives from Dangote Petroleum Refinery, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Ports Authority, Afreximbank, and Hauwa Ibrahim, the Secretary of the Committee.