IDNN POLICY WATCH – FG ORDERS FULL IMPLEMENTATION OF NAIRA-FOR-CRUDE INITIATIVE
By IDNN Business Desk | April 2025
🇳🇬 FEDERAL EXECUTIVE COUNCIL REACTIVATES NAIRA-FOR-CRUDE AGREEMENT WITH LOCAL REFINERS
The Federal Executive Council has ordered the full enforcement of the previously suspended Naira-for-Crude agreement, a policy designed to reduce Nigeria’s dependence on foreign exchange in petroleum transactions.
Announced via the Ministry of Finance’s official X handle on Wednesday under the headline “Update on the Crude and Refined Product Sales in Naira Initiative,” the directive revives a critical initiative initially launched in partnership with NNPC Limited and Dangote Petroleum Refinery.
FROM PAUSE TO POLICY: WHY THE NAIRA-FOR-CRUDE DEAL IS BACK
The first phase of the six-month agreement ended on March 31, 2025, without a renewal. Following that, Dangote Refinery ceased selling refined products in naira. However, following a review meeting held on Tuesday, the government has clarified that the initiative is not temporary but a long-term structural policy.
“This initiative is not time-bound, but a national directive aimed at strengthening local refining and improving energy security,” the Ministry stated.
The policy mandates all transactions involving crude oil and refined petroleum products to be conducted in Naira. Authorities argue that this will reduce dollar demand, support the naira, and stimulate domestic investment in refining infrastructure.
A POLICY ROOTED IN ECONOMIC SOVEREIGNTY
The Technical Sub-Committee overseeing the policy, which convened earlier this week, affirmed that implementation remains active and integral to the administration’s energy security and FX stabilization strategy.
“Like all large-scale reforms, we acknowledge there are challenges. But these are being addressed through inter-agency coordination,” the statement read.
WHO WAS AT THE TABLE: KEY STAKEHOLDERS SPEAK
Present at the meeting were top government and industry officials, including:
- Wale Edun, Minister of Finance and Coordinating Minister of the Economy (Chairman, Implementation Committee)
- Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (Chairman, Technical Sub-Committee)
- Dapo Segun, Chief Financial Officer of NNPC Limited
- Representatives of Dangote Refinery, CBN, Nigerian Ports Authority, NUPRC, NMDPRA, and Afreximbank
The meeting reinforced the federal government’s determination to institutionalize the Naira-for-Crude policy as a permanent tool for advancing energy self-reliance.