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FG Orders Full Implementation Of Naira-For-Crude Deal With Local Refiners

Published

1 month ago

Apr 9, 2025.

FG orders full implementation of Naira-for-Crude deal with local refiners.
Dangote refinery halted naira sales after initial agreement expired in March.
Policy aims to boost energy security and reduce forex dependence long-term.

The Federal Executive Council has officially ordered the full-scale implementation of the suspended Naira-for-Crude initiative involving local petroleum refiners, including the Dangote Refinery.

This development was disclosed on Wednesday via the Ministry of Finance’s official X (formerly Twitter) account in a post titled, “Update on the Crude and Refined Product Sales in Naira Initiative.”

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EKO HOT BLOG reports that the move marks a significant shift in Nigeria’s strategy to reduce reliance on foreign exchange for petroleum products. It follows the expiration of the initial six-month phase of the agreement on March 31, 2025. That agreement had involved the Nigerian National Petroleum Company Limited (NNPC), the Dangote Petroleum Refinery, and the Federal Government.

Since the deal was not renewed at the end of March, Dangote Refinery reportedly ceased the sale of refined petroleum products in naira. However, the latest directive revives the policy and makes it a long-term national economic strategy rather than a stopgap measure.

According to the government, the Crude and Refined Product Sales in Naira initiative is designed to strengthen Nigeria’s energy security, reduce the pressure on foreign reserves, and encourage sustainable local refining practices.

A statement issued after a technical sub-committee meeting on Tuesday clarified the long-term intent of the initiative. It 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.

“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.”

This renewed focus is expected to enhance the stability of the naira and support the long-term goals of economic reform and energy independence.