*Nigeria’s Federal Executive Council restates its commitment to full implementation of the recently suspended Naira-for-Crude agreement for oil refiners to support sustainable local production, and enhance energy security in West African country

Gbenga Kayode | 绿帽献妻

Sequel to successful implementation of the first phase of the initiative for six months, Nigeria’s Federal Executive Council (FEC) has officially directed the full implementation of the suspended Naira-for-Crude agreement with indigenous oil refiners in the country.

绿帽献妻 reports the Federal Ministry of Finance disclosed this development Wednesday, April 9, 2025, via its verified official X handle, in a statement titled, 鈥淯pdate on the Crude and Refined Product Sales in Naira Initiative”.

It is noted that the Ministry successfully executed the first phase of the six-month agreement that ended March 31 this year.

The first phase involved the trio of the Federal Government, Nigerian National Petroleum Company Limited (NNPCL) and Dangote Petroleum Refinery, in Lagos.

However, the non-renewal of the Naira-for-crude deal has discouraged the Dangote Petroleum Refinery from selling refined petroleum products to energy consumers in Naira, according to reports.

The Federal Government Committee on the Naira-for-Crude initiative, in an update Wednesday, reportedly affirmed that the policy is not temporary but a long-term plan to cut Nigeria鈥檚 dependence on Foreign Exchange (Forex) for petroleum products.

The Committee, in a statement on its position on the Naira-for-Crude deal came after a key meeting held Tuesday to review progress and tackle extant issues in the oil and gas industry in Nigeria.

The Committee also explained 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 in the country.

Technical Sub-Committee: Government committed to full implementation of this ‘strategic initiative’

The statement noted: 鈥淭he 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.

鈥淭he stakeholders reaffirmed the government鈥檚 continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council.

鈥淭hus, 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.鈥�

On basic objectives of Naira-for-Crude initiative

The Ministry of Petroleum Resources said the Federal Government has stressed the policy, which mandates the transaction of crude oil and refined petroleum products in Naira, is aimed at strengthening the country鈥檚 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 stated that the policy is structured to promote energy security and encourage investment in domestic refining infrastructure in Nigeria.

Assuring the stakeholders, the Federal Government is addressing current challenges systematically, it stated: 鈥淎s with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time.

鈥淗owever, 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.”

In attendance at the meeting were Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy, who is Chairman of the Implementation Committee; Mr. Zacch Adedeji; Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chairman of the Technical Sub-Committee; and Mr. Adedapo Segun, Group Chief Financial Officer of NNPC Limited and Coordinator of NNPC Refineries; as well the Management of NNPC Trading.

Others present were representatives from Dangote Petroleum Refinery and Petrochemicals Limited; the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), Afreximbank, and Hauwa Ibrahim, Secretary to the Committee.

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