FG Meets With Dangote Officials, Says Naira-for-Crude Still In Effect.
The Federal Government claims that its naira-for-crude effort with local refineries is a “key policy directive designed to support sustainable local refining” rather than a transitory solution.
The government also stated that the initiative is still in existence and will continue immediately, overruling the decision of the NNPCL’s former leader, Mele Kyari, to terminate it.
At a meeting with Dangote Refinery representatives on Tuesday, Minister of Finance Wale Edun stated that the naira-for-crude policy remains in place.
The Ministry of Finance said on Wednesday via its official X handle that the Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative met on Tuesday to discuss progress and resolve outstanding implementation issues.
The meeting was attended by Edun, Chairman of the Implementation Committee; Zacch Adedeji, Chairman of the Technical Sub-Committee and Chairman of the Federal Inland Revenue Service (FIRS); Dapo Segun, Chief Financial Officer of NNPCL; the Coordinator of NNPC Refineries; NNPC Trading Management; and representatives of Dangote Petroleum Refinery and Petrochemicals.
Senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), an Afreximbank representative, and the Committee’s Secretary, Hauwa Ibrahim, were also in attendance.
“The stakeholders confirmed the government’s ongoing commitment to fully implementing this strategic plan, as authorised by the Federal Executive Council (FEC).
“Thus, the Crude and Refined Product Sales in Naira program is a crucial policy directive aimed to boost long-term local refining, strengthen energy security, and minimise dependency on foreign exchange in the domestic petroleum market.
“As with any major policy move, the Committee recognises that implementation issues may develop from time to time. However, such concerns are actively addressed by collaborative efforts by 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,” according to a statement.
As part of efforts to lessen the strain on the US dollar and ensure petroleum product pricing stability, the Federal Executive Council (FEC) authorised the NNPCL in July 2024 to sell crude oil to Dangote Refinery and other local refineries in naira rather than US dollars.However, in March 2025, the Nigerian National Petroleum Company Limited (NNPCL) stated that its Naira-denominated crude sales agreement with the Dangote Refinery was structured for six months, with March 2025 being the expiration date.Subsequently, the $20 billion Dangote Refinery temporarily banned the selling of petroleum goods in Naira. “This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars,” according to the business.
The pump price of petrol increased from ₦860 to ₦1,000, costing consumers at least ₦70 more than the previous price.However, the refinery stated that it would resume selling its products to the local Naira market as soon as it got crude cargoes from the NNPCL.