In a major policy reversal, the Federal Executive Council (FEC) has directed the full and immediate implementation of the Naira-for-Crude initiative, a policy aimed at selling crude oil to local refineries in Naira rather than U.S. dollars. This directive overrides the earlier suspension by the Nigerian National Petroleum Company Limited (NNPCL) under the leadership of its former boss, Mele Kyari.
The announcement came after a high-level meeting on Tuesday involving top government and industry stakeholders, including Finance Minister Wale Edun, representatives of the Dangote Refinery, and key players from regulatory agencies like the NUPRC, NMDPRA, CBN, and NNPC Trading.
According to an official statement posted on the Ministry of Finance’s X handle, the meeting reaffirmed government’s resolve to continue the Naira-for-Crude policy, describing it as a “key policy directive” and not a temporary intervention.
“The Crude and Refined Product Sales in Naira initiative is designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market,” the statement read.
The initiative, originally approved in July 2024, allowed local refineries such as the $20 billion Dangote Refinery to purchase crude oil in naira, a move aimed at easing pressure on the country’s dollar reserves and stabilizing fuel prices.
However, in March 2025, NNPCL halted the arrangement, claiming it was a time-bound agreement ending in March. This suspension forced Dangote Refinery to pause local product sales in naira due to currency mismatch concerns. The ripple effect was swift, with the pump price of petrol rising from ₦860 to around ₦1,000 per litre.
Following the backlash and fuel price hikes, President Bola Tinubu responded by dissolving the entire NNPCL Board and appointing a new 11-member leadership team led by Bashir Ojulari as Group CEO and Ahmadu Kida as Chairman.
With the FEC’s latest order, local crude supply in naira is set to resume, paving the way for Dangote Refinery and others to return to naira-based product pricing.
“The policy is not just aimed at affordability, but long-term energy security and local industrial growth,” said Finance Minister Wale Edun, who chairs the Implementation Committee.
While stakeholders acknowledged that implementation hurdles may still arise, the government assured that such issues are being proactively addressed.
“The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” the Ministry emphasized.
Analysts say the resumption of Naira-for-Crude sales could provide critical relief to Nigerians, as it would help curb further price surges, stabilize the fuel supply chain, and reduce dollar dependency in the petroleum market.
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