In a major development for Nigeria’s oil and energy sector, the Federal Executive Council (FEC) has officially directed the full implementation of the Naira-for-Crude agreement with local refiners. This move comes as part of the government’s broader effort to reduce the country’s reliance on foreign exchange for petroleum products and strengthen local refining capabilities.
The Ministry of Finance confirmed the decision through its official X handle on Wednesday, titled “Update on the Crude and Refined Product Sales in Naira Initiative.” This announcement follows the conclusion of the first phase of the six-month agreement, which involved the Federal Government, Nigerian National Petroleum Company Limited (NNPC), and Dangote Petroleum Refinery. The initial phase ended on March 31, 2025, but the deal has not been renewed — a factor that led to Dangote Refinery halting the sale of refined petroleum products in naira.
The update clarifies that this initiative is not a temporary measure, but a long-term policy designed to support sustainable local refining, enhance energy security, and significantly reduce Nigeria’s dependency on foreign exchange for petroleum transactions. The committee emphasized that the initiative is a strategic, forward-looking policy, not just a short-term intervention.
This development follows a critical meeting held on Tuesday, where stakeholders reviewed progress and addressed ongoing implementation challenges. The government reaffirmed its unwavering commitment to the full execution of this key policy directive, which is seen as vital to ensuring the country’s energy security and stabilizing the domestic petroleum market.
The statement noted, “The Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative convened an update meeting to review progress and tackle ongoing issues. The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative.”
As the country moves forward with this bold policy, the aim is clear: to reduce the nation’s reliance on foreign currency while boosting local refining capacity, thus contributing to a more secure and sustainable energy future for Nigeria.
More details are expected soon. Stay tuned for updates as the government pushes ahead with this critical economic initiative.
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