FEC Orders Full Implementation of Naira-for-Crude Policy

The Federal Executive Council (FEC) has officially approved the full implementation of the previously suspended Naira-for-Crude agreement involving local petroleum refiners.

This directive was announced by the Ministry of Finance via its official X handle in a post titled “Update on the Crude and Refined Product Sales in Naira Initiative” on Wednesday.

The first phase of the agreement a six-month deal involving the Federal Government, Nigerian National Petroleum Company Limited (NNPC), and Dangote Petroleum Refinery—ended on March 31, 2025. Due to the lack of renewal, Dangote Refinery has since ceased selling refined petroleum products in naira.

In its latest update, the Ministry clarified that the policy is not intended to be temporary, but rather a long-term initiative designed to reduce Nigeria’s reliance on foreign exchange for petroleum transactions. This update followed a key stakeholder meeting held on Tuesday to review progress and address implementation challenges.

The Ministry emphasized that the Naira-for-Crude initiative is part of a broader national strategy to support sustainable local refining, enhance energy security, and stabilize the foreign exchange market.

The statement read:
“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 policy mandates that crude oil and refined petroleum products be transacted in Naira, with the goal of strengthening Nigeria’s economic sovereignty, encouraging investment in local refining, and reducing the pressure on the forex market.

The Ministry also noted that while the policy transition presents some challenges, these are being systematically addressed through coordinated efforts among stakeholders.

“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. The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” it noted.

The meeting was attended by key government and industry figures, including the Chairman of the Implementation Committee, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service, Mr. Zacch Adedeji; Chief Financial Officer of NNPC Limited, Mr. Dapo Segun; Coordinator of NNPC Refineries; Management of NNPC Trading.

Also in attendance were representatives from Dangote Petroleum Refinery and Petrochemicals, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Ports Authority, Afreximbank, and Committee Secretary Hauwa Ibrahim.