FG Says Naira-for-Crude Oil Deal Will Continue Despite Initial Phase Ending
The federal government has announced that the naira-for-crude oil initiative will continue, even after the first phase officially ended on March 31, 2025.
The Ministry of Finance disclosed this on Monday following a meeting of the technical sub-committee on the Crude and Refined Product Sales in Naira initiative. The meeting was attended by Wale Edun, Minister of Finance, and Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS) and chairman of the committee.
Also present were representatives of Dangote Petroleum Refinery; Dapo Segun, Chief Financial Officer of the Nigerian National Petroleum Company (NNPC) Limited and coordinator of NNPC refineries; the management of NNPC Trading; and senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Other attendees included officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), representatives from the African Export-Import Bank (Afreximbank), and Hauwa Ibrahim, the committee’s secretary.
In a statement, the ministry said: “The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC).”
It added that the initiative is not a short-term measure but a core policy directive aimed at supporting sustainable local refining, enhancing energy security, and reducing dependence on foreign exchange for domestic petroleum transactions.
“As with any major policy shift, the committee acknowledges that implementation challenges may arise from time to time,” the statement noted, adding that such issues are being addressed through coordinated efforts among all relevant parties.
The ministry emphasized that the initiative will remain in effect as long as it serves the public interest and aligns with national economic objectives.
The naira-for-crude policy, which commenced on October 1, 2024, was introduced to improve the supply of crude oil to local refineries, save foreign exchange on petroleum imports, and help bring down pump prices.
However, on March 10, TheCable reported that the NNPC had suspended the initiative until 2030, citing that it had already forward-sold all its crude oil.
Nine days later, the Dangote refinery also announced a temporary halt to the sale of petroleum products in naira, stating that the move was necessary to avoid a mismatch between sales proceeds and crude oil purchase obligations, which are currently denominated in U.S. dollars.
