The Federal Government has reaffirmed the continuation of the naira-for-crude oil initiative with local refineries, declaring it a key policy directive and not a temporary measure.
This decision overrides an earlier stance by the Nigerian National Petroleum Company Limited (NNPCL) under its former Group CEO Mele Kyari, which had tenured the initiative to end in March 2025.
At a high-level meeting on Tuesday with representatives of the Dangote Refinery, Minister of Finance Wale Edun confirmed that the initiative remains in effect.
The meeting, held by the Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative, aimed to review progress and address implementation challenges.
Also in attendance were FIRS Chairman Zacch Adedeji, NNPCL CFO Dapo Segun, representatives from NNPC Refineries, Dangote Refinery, the Central Bank of Nigeria, the Nigerian Ports Authority, and others.
In a statement released on Wednesday via the Ministry of Finance’s official X handle, stakeholders reiterated their commitment to the policy, stating that it supports sustainable local refining, energy security, and reduces reliance on foreign exchange in the petroleum sector.
The naira-for-crude policy was initially approved by the Federal Executive Council (FEC) in July 2024 to ease pressure on the US dollar and stabilize fuel prices. However, in March 2025, NNPCL declared the agreement as a six-month arrangement, prompting Dangote Refinery to suspend its naira-based sales due to foreign exchange mismatches. The temporary suspension led to a spike in petrol prices from ₦860 to ₦1,000 per litre.
Shortly after, President Bola Tinubu dismissed Kyari and the entire NNPCL Board, appointing a new leadership led by Bashir Ojulari as GCEO.
With the resumption of naira-based crude supplies, the Dangote Refinery is expected to resume local sales in naira, offering potential relief to Nigerians battling high fuel costs and foreign exchange volatility.
