- The Federal Executive Council (FEC) has ordered the full implementation of the Naira-for-Crude oil deal with local refiners.
- This policy is a long-term strategy to reduce Nigeria’s dependence on forex for petroleum transactions.
- The initiative aims to strengthen Nigeria’s economic sovereignty and boost local refining capacity.
What the Naira-for-Crude Deal Means for Nigeria
The Federal Ministry of Finance recently announced that the Federal Executive Council (FEC) has directed the complete execution of the Naira-for-Crude agreement with domestic refiners. This decision follows a review meeting by the Technical Sub-Committee, which reaffirmed the government’s commitment to this strategic initiative.
Why This Policy Matters
The Naira-for-Crude deal is not a temporary measure but a long-term policy designed to:
✔ Enhance energy security by supporting local refining
✔ Reduce reliance on foreign exchange for petroleum transactions
✔ Stabilize the forex market by minimizing dollar demand in domestic fuel trade
✔ Encourage investments in Nigeria’s refining infrastructure
Current Status and Challenges
The initial six-month phase of the agreement, involving the NNPC Limited and Dangote Petroleum Refinery, ended on March 31, 2025, and was not renewed. As a result, Dangote Refinery halted the sale of petroleum products in Naira.
However, the government has clarified that the policy remains in effect and will continue as long as it serves national economic interests. While implementation challenges exist, authorities are working to resolve them through coordinated efforts.
Who’s Involved in the Initiative?
Key stakeholders include:
- Ministry of Finance (Chair: Wale Edun)
- Federal Inland Revenue Service (FIRS) (Chair: Zacch Adedeji)
- NNPC Limited(CFO: Dapo Segun)
- Dangote Refinery, CBN, NUPRC, NMDPRA, Afreximbank, and NPA
What’s Next for Nigeria’s Oil & Gas Sector?
This policy signals a major shift toward domestic refining sustainability and reduced forex dependency. If successfully implemented, it could:
✅ Lower fuel prices by reducing import costs
✅ Strengthen the Naira by cutting dollar demand
✅ Boost local refinery investments
What do you think about the Naira-for-Crude deal Share your thoughts in the comments!
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