The Federal Executive Council (FEC) has officially ordered the full implementation of the Naira-for-Crude policy, a strategic agreement aimed at reducing Nigeria’s dependence on foreign exchange in the oil and gas sector.
According to an update shared by the Federal Ministry of Finance via its official X (formerly Twitter) handle on Wednesday, the directive reinstates the suspended crude oil deal involving the Nigerian National Petroleum Company Limited (NNPC) and local refiners, including the Dangote Petroleum Refinery.
The first phase of the six-month deal expired on March 31, 2025, without renewal, prompting Dangote Refinery to temporarily halt sales of refined petroleum products in naira. However, the latest government directive signals the return and full-scale implementation of the initiative.
Long-Term Policy to Boost Local Refining and Stabilize Naira
The Ministry of Finance clarified that the Crude and Refined Products Sales in Naira initiative is not a temporary measure, but a long-term economic policy designed to support local refining capacity, strengthen energy security, and reduce reliance on the US dollar for petroleum transactions in Nigeria.
A review meeting was held on Tuesday, involving key stakeholders, including:
- Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun
- Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji
- Chief Financial Officer of NNPC Ltd., Mr. Dapo Segun
Representatives from Dangote Petroleum Refinery, NNPC Trading, Central Bank of Nigeria (CBN), Afreximbank, and various regulatory bodies in the petroleum sector.
The committee emphasized that the Naira-for-Crude policy is critical to:
- Enhancing economic sovereignty
- Reducing foreign exchange pressure
- Encouraging investment in local refining infrastructure
- Policy Challenges Underway but Actively Addressed
While acknowledging that the implementation process presents challenges, the committee reassured the public that these issues are being systematically resolved through inter-agency coordination. The initiative is expected to continue as long as it aligns with national interest and supports Nigeria’s economic growth objectives.
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This renewed focus on domestic crude oil transactions in Naira is seen as a game-changer for Nigeria’s oil and gas industry, with the potential to stabilize the forex market, promote self-sufficiency in fuel production, and improve the overall economic outlook.
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