The Naira-for-Crude arrangement initially commenced as a six-month pilot programme involving the Federal Government, the Nigerian National Petroleum Company Limited (NNPC Ltd), and the Dangote Petroleum Refinery. This phase concluded on March 31, 2025, and has yet to be formally renewed, prompting Dangote Refinery to halt sales of refined products in naira.
Abuja, Nigeria – The Federal Executive Council (FEC) has ordered the immediate and full enforcement of the Naira-for-Crude initiative, a policy aimed at promoting local refining and reducing Nigeria’s reliance on foreign exchange in petroleum transactions.
This directive follows a strategic meeting of the Technical Sub-Committee on the Crude and Refined Product Sales in Naira Initiative, which convened on Tuesday to assess progress and tackle emerging implementation issues.
The Ministry of Finance, in an official update shared via its verified X (formerly Twitter) handle on Wednesday, clarified that the policy is not a temporary fix but a long-term economic strategy. It is designed to cut the nation’s dependence on the dollar for domestic petroleum exchanges and foster investment in refining infrastructure.
According to the statement, the initiative will remain in place as long as it aligns with the country’s broader economic interests and continues to serve the public good. “The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” it read.
The Naira-for-Crude arrangement initially commenced as a six-month pilot programme involving the Federal Government, the Nigerian National Petroleum Company Limited (NNPC Ltd), and the Dangote Petroleum Refinery. This phase concluded on March 31, 2025, and has yet to be formally renewed, prompting Dangote Refinery to halt sales of refined products in naira.
Despite the initial pause, the latest development affirms the government’s renewed commitment to ensuring the continuity of the scheme. The Ministry emphasised that the plan is a critical policy directive and not a stopgap intervention. It aims to improve energy security, strengthen economic sovereignty, and reduce pressure on the foreign exchange market.
While acknowledging the complexities associated with such a significant policy shift, the government admitted that challenges have emerged but are being addressed through a coordinated, multi-agency approach.
“As with any major policy shift, implementation challenges may arise from time to time. However, such issues are being actively addressed through coordinated efforts among all parties,” the statement noted.
The meeting was chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who also heads the Implementation Committee. Present at the meeting were key stakeholders including the Executive Chairman of the Federal Inland Revenue Service and Chair of the Technical Sub-Committee, Mr. Zacch Adedeji; Chief Financial Officer of NNPC Ltd, Mr. Dapo Segun; the Coordinator of NNPC Refineries, and officials from NNPC Trading.
Other attendees included representatives from Dangote Petroleum Refinery and Petrochemicals, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), Nigerian Ports Authority (NPA), Afreximbank, and the Secretary of the Committee, Hauwa Ibrahim.
The FEC’s directive marks a renewed push to fortify the country’s energy framework and safeguard its currency from the volatility of the global oil market.
Join our Channel...