The Federal Executive Council has officially approved the full implementation of the suspended Naira-for-Crude oil exchange agreement with local refiners, marking a significant policy shift in Nigeria’s petroleum industry.
The announcement was made by the Ministry of Finance on Wednesday via its official X handle, in a post titled “Update on the Crude and Refined Product Sales in Naira Initiative.”
This move comes after the expiration of the first phase of the six-month deal involving the Federal Government, Nigerian National Petroleum Company Limited (NNPC), and the Dangote Petroleum Refinery, which ended on March 31, 2025.
Following the expiration, the Dangote refinery ceased selling refined petroleum products in naira due to the absence of a renewed agreement.
However, in a decisive turn of events, the government clarified that the Naira-for-Crude policy is not a temporary intervention but a strategic and long-term directive aimed at strengthening Nigeria’s economic sovereignty, boosting local refining, and reducing the nation’s heavy reliance on foreign exchange for petroleum transactions.
According to the statement released after a key review meeting held on Tuesday, the Federal Executive Council reaffirmed its unwavering commitment to the initiative.
The Technical Sub-Committee overseeing the policy emphasized that the implementation would be continuous and adjusted to align with national economic goals.
“The Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention,” the statement read. “It is a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
The update highlighted that the policy mandates transactions of both crude oil and refined petroleum products in Naira, a move aimed at stabilizing the forex market and encouraging heavy investment in local refining infrastructure.
The federal government also assured stakeholders that ongoing challenges related to the policy’s implementation are being tackled through inter-agency collaboration.
“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time. However, such issues are being actively addressed through coordinated efforts among all parties,” it added.
The review meeting was chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and attended by key government and industry stakeholders.
These included Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji; Chief Financial Officer of NNPC Limited, Dapo Segun; representatives from Dangote Petroleum Refinery, NNPC Trading, the Central Bank of Nigeria, Nigerian Ports Authority, Nigerian Upstream and Midstream Petroleum Regulatory Commissions, and Afreximbank.
Industry watchers say the full rollout of this policy could reset the dynamics of Nigeria’s oil and gas sector, promoting self-sufficiency and strengthening the naira.
However, its success will depend on consistent enforcement, stakeholder cooperation, and overcoming infrastructural and regulatory bottlenecks.
As implementation begins in earnest, all eyes will be on the government and its partners to see how effectively the Naira-for-Crude initiative transforms Nigeria’s petroleum landscape.