The federal government has confirmed that the “naira-for-crude oil deal” will proceed beyond the conclusion of its initial phase on March 31.
This announcement followed a meeting held on Monday, involving the technical sub-committee on the “crude and refined product sales in naira initiative,” Wale Edun, the minister of finance, and Zacch Adedeji, committee chairman and executive chairman of the Federal Inland Revenue Service (FIRS).
In attendance were representatives from Dangote Petroleum Refinery, Dapo Segun — the chief financial officer of the Nigerian National Petroleum Company (NNPC) Limited and coordinator of its refineries — the management of NNPC Trading, and senior personnel from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Also present were officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), African Export-Import Bank (Afreximbank) representatives, and Hauwa Ibrahim, who serves as the committee’s secretary.
According to the ministry, “the stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC).”
The ministry emphasized that the “Crude and Refined Product Sales in Naira initiative” is a core policy strategy — not a temporary fix — aimed at strengthening local refining, improving energy security, and reducing dependency on foreign exchange in Nigeria’s petroleum market.
The statement acknowledged the possibility of “implementation challenges” but assured that they are being addressed through collaboration among relevant parties.
The ministry reiterated, “the initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives.”
Launched on October 1, 2024, the initiative allows the sale of crude oil and refined products in “naira” to domestic refineries. It was designed to enhance local supply, cut down on petroleum import costs, and lower pump prices.
On March 10, TheCable reported that the NNPC had paused the “naira-for-crude deal” until 2030, citing that the company had already forward-sold all of its crude oil.
Nine days after, the Dangote Refinery temporarily suspended petroleum product sales in “naira,” explaining that the decision was “necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.”