9th April 2025
The uncertainty that surrounded the continuation of the Naira-for-Crude agreement seem to have been put to rest as Federal Executive Council has officially directed the full implementation of the suspended agreement with local refiners.
This was disclosed on Wednesday on the official X handle of the Ministry of Finance, titled“ The Update on the Crude and Refined Product Sales in Naira Initiative,”
The first phase of the naira-for-crude agreement was a six-month deal involving the Federal Government, Nigerian National Petroleum Company Limited, and Dangote Petroleum Refinery ended March 31, 2025 and had not been renewed prompting Dangote refinery to stopped selling refined petroleum products in naira due to the non-renewal.
After a key meeting on Tuesday to review progress and tackle ongoing issues, a new update was announced by the committee on Wednesday, stating that the policy was not temporary but a long-term plan to cut Nigeria’s dependence on foreign exchange for petroleum.
Adding that the initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, and bolster energy security.
The committee 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.
READ MORE; Uncertainty Over Petrol Price As Naira-For-Crude Talks Shaky
“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 naira-for-crude agreemen was aimed at strengthening the country’s economic sovereignty, enhancing local refining capacity, and stabilising the foreign exchange market by reducing the demand for dollars in domestic petroleum transactions.
The ministry further explained that policy was structured to foster energy security and encourage investment in domestic refining infrastructure.
The ministry, acknowledging that the transition involves complexities and existing challenges, but are being addressed systematically
“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,” it noted.
READ MORE; NNPCL’s Bid To Halt Dangote Refinery’s Suit Over Import Licence Dispute, Fails In Court.
The committee meeting was attended by the Chairman of the Implementation Committee, Hon. Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; the Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service, Mr. Zacch Adedeji; the Chief Financial Officer of NNPC Limited, Mr. Dapo Segun; the Coordinator of NNPC Refineries; Management of NNPC Trading.
Also present, according the statement were representatives from Dangote Petroleum Refinery and Petrochemicals, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Ports Authority, Afreximbank, and the Secretary of the Committee, Hauwa Ibrahim amongst others.
