The Federal Executive Council has officially mandated the complete implementation of the previously suspended Naira-for-Crude agreement with domestic refiners.
The Ministry of Finance announced this on its official X account under the title “Update on the Crude and Refined Product Sales in Naira Initiative” on Wednesday.
It’s important to note that the initial phase of this six-month agreement, which involved the Federal Government, Nigerian National Petroleum Company Limited, and Dangote Petroleum Refinery, concluded on March 31, 2025, and has not been renewed. Consequently, the Dangote refinery ceased selling refined petroleum products in naira following the non-renewal of the agreement.
In a recent update, the committee clarified that this policy is intended as a long-term strategy to reduce Nigeria’s reliance on foreign exchange for petroleum, following a key meeting on Tuesday to assess progress and address existing challenges.
The initiative is described as a crucial policy directive aimed at supporting sustainable local refining and enhancing energy security, rather than being a temporary measure. The statement declared, “The Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative held a meeting on Tuesday to review progress and resolve ongoing implementation issues.
Stakeholders reiterated the government’s commitment to fully implementing this strategic initiative as directed by the Federal Executive Council. Therefore, the Crude and Refined Product Sales in Naira initiative is a permanent policy aimed at fostering sustainable local refining, enhancing energy security, and decreasing dependence on foreign exchange in the domestic petroleum sector.”
