By John Umeh
The Federal Executive Council (FEC) has officially directed the full reinstatement and execution of the suspended naira-for-crude oil policy, which allows local refiners to pay for crude oil using the Nigerian currency instead of foreign exchange.
This development was shared by the Ministry of Finance on its official X (formerly Twitter) account, under a post titled “Update on the Crude and Refined Product Sales in Naira Initiative.”
The initial phase of the agreement—which involved the Federal Government, the Nigerian National Petroleum Company (NNPC) Limited, and the Dangote Petroleum Refinery—ran for six months and concluded on March 31, 2025. Since the agreement was not renewed, Dangote Refinery had ceased selling refined products in naira.
However, following a recent strategy meeting, the government clarified that the initiative is not just a short-term fix but a long-term national policy designed to reduce Nigeria’s reliance on foreign exchange for fuel transactions. The goal is to strengthen local refining capacity, improve energy security, and promote economic stability by reducing demand for dollars in the oil sector.
According to a statement from the policy’s Technical Sub-Committee, the government remains committed to its full implementation, emphasizing its importance in supporting sustainable refining and securing Nigeria’s energy future. The committee also acknowledged that, like any major policy transition, there are implementation challenges, but efforts are underway to address these issues collaboratively.
Present at the meeting were top officials including the Minister of Finance and Chairman of the Implementation Committee, Wale Edun; FIRS Chairman Zacch Adedeji; key NNPC executives; and representatives from the Central Bank, Nigerian Ports Authority, Dangote Refinery, Afreximbank, and various petroleum regulatory bodies.
