The federal government has announced the continuation of the naira-for-crude oil initiative following the conclusion of its first phase on March 31.
The decision was made public on Monday after a meeting involving the technical sub-committee on the crude and refined product sales in naira initiative.
In attendance were Minister of Finance Wale Edun; Zacch Adedeji, chairman of the committee and executive chairman of the Federal Inland Revenue Service (FIRS); representatives of Dangote Petroleum Refinery; Dapo Segun, CFO of NNPC Limited; and other key officials from NNPC Trading, NUPRC, NMDPRA, the Central Bank of Nigeria, the Nigerian Ports Authority, Afreximbank, and committee secretary Hauwa Ibrahim.
“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC),” the ministry said.
“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.
“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time.”
The ministry said the 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,” the ministry said.
It will be recalled that sale of crude oil and refined petroleum products in naira to local refineries began on October 1, 2024, as part of efforts to boost local supply, reduce reliance on dollar-denominated imports, and lower pump prices.
However, the initiative faced setbacks when reports emerged that the Nigerian National Petroleum Company (NNPC) had suspended the naira-for-crude arrangement until 2030, having already forward-sold all its crude oil output.
Shortly after, the Dangote Refinery also announced a temporary pause in the sale of petroleum products in naira. The refinery explained that the suspension was necessary to prevent a financial mismatch, as its crude oil purchase obligations are currently denominated in U.S. dollars.
The suspension sparked debates and concern across the oil and gas industry, raising questions about the future of the initiative.
