By Abiola Olawale
The Federal Executive Council (FEC) has reportedly ordered the full implementation of the Naira-for-Crude agreement.
The directive, announced on Wednesday, April 9, 2025, by the Ministry of Finance, ends weeks of uncertainty following the expiration of the initial six-month pilot phase of the deal on March 31, 2025.
This is also expected to offer much-needed relief to the Dangote Refinery’s operations amid ongoing crude supply challenges.
The Naira-for-Crude initiative, first approved by the FEC in October 2024, allows the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to local refineries, including Dangote, in naira rather than dollars.
The suspension of the agreement or policy earlier this year had sparked concerns about potential fuel price hikes and forex market volatility, with Dangote Refinery temporarily halting naira-based sales of petroleum products due to what the company said was “a mismatch between its naira proceeds and dollar-denominated crude procurement costs.”
However, following a meeting of the Technical Sub-Committee on Crude and Refined Product Sales in Naira on Tuesday, April 8, 2025, the FEC stepped in with a decisive order to fully implement the policy.
In a statement released via its official X handle, the Ministry of Finance noted: “The 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.
“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council.
“Thus, 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.”
The statement added that the meeting was attended by the Chairman of the Implementation Committee, Hon. Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; the Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service, Mr Zacch Adedeji; the Chief Financial Officer of NNPC Limited, Mr Dapo Segun; the Coordinator of NNPC Refineries; Management of NNPC Trading.
Also present were representatives from Dangote Petroleum Refinery and Petrochemicals, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Ports Authority, Afreximbank, and the Secretary of the Committee, Hauwa Ibrahim.
