By Andrew Haruna, Abuja
The Federal Executive Council (FEC) has officially ordered the full implementation of the suspended Naira-for-Crude exchange agreement with local refiners, signalling a renewed effort to strengthen the country’s energy security and reduce reliance on foreign exchange in the petroleum sector.
This was disclosed on Wednesday by the Ministry of Finance via its official X (formerly Twitter) handle in a post titled: “Update on the Crude and Refined Product Sales in Naira Initiative.”
The policy was initially introduced in 2024 as a six-month pilot programme involving the Federal Government, the Nigerian National Petroleum Company Limited (NNPCL), and Dangote Petroleum Refinery, but the agreement expired on March 31, 2025, without being renewed—prompting Dangote Refinery to suspend the sale of refined petroleum products in naira.
However, following a high-level review meeting held on Tuesday, the government has now clarified that the initiative is not a temporary measure, but a long-term policy framework.
“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council,” the Ministry’s statement read.
“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 initiative is part of a broader strategy to stabilise the naira and reduce Nigeria’s dependence on the dollar for the importation and pricing of petroleum products. By encouraging the sale of crude and refined products in local currency, the policy aims to preserve foreign reserves, deepen domestic energy market reforms, and encourage investment in local refining capacity.
Although full implementation details remain unclear, observers note that reactivating the policy could ease pressure on Nigeria’s forex market, particularly amid volatile global oil prices and local inflationary challenges.
It remains to be seen whether the Dangote Refinery and other domestic refiners will resume participation immediately following this renewed policy directive.
