The Federal Executive Council (FEC) has officially directed the immediate and full implementation of the Naira-for-Crude initiative, reinstating the policy suspended under former Nigerian National Petroleum Company Limited (NNPCL) Group CEO, Mele Kyari. The government emphasized that the initiative is not a temporary fix but a strategic, long-term policy aimed at supporting local refining, enhancing energy security, and reducing Nigeria’s dependence on foreign exchange in the petroleum sector.
During a meeting with representatives of the Dangote Refinery on Tuesday, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, reaffirmed that the Naira-for-Crude deal remains in effect. In a post via its official X handle, the Ministry of Finance confirmed that the Technical Sub-Committee on Crude and Refined Product Sales in Naira convened on Tuesday to review progress and address key implementation challenges.
The meeting was chaired by Edun and attended by Zacch Adedeji, Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service (FIRS), Dapo Segun, Chief Financial Officer of NNPCL, the Coordinator of NNPC Refineries, and top executives from NNPC Trading and the Dangote Petroleum Refinery and Petrochemicals. Also in attendance were 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), a representative of Afreximbank, and the Secretary of the Committee, Hauwa Ibrahim.
In its statement, the Ministry noted, “The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC). Thus, 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. As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time. However, such issues are being actively addressed through coordinated efforts among 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.”
The Naira-for-Crude policy was introduced in July 2024 as part of efforts to ease pressure on the US dollar and stabilize domestic petrol prices. Under the policy, NNPCL was directed by FEC to sell crude oil to local refineries, including the $20bn Dangote Refinery, in Naira rather than US dollars. However, in March 2025, NNPCL announced that the initial Naira-for-Crude deal had a six-month term, which expired that same month. Following the lapse, Dangote Refinery halted domestic sales in Naira, citing a mismatch between its crude procurement costs, still dollar-denominated, and local product sales. The company stated, “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.”
The suspension triggered an immediate increase in petrol prices across Nigeria, with pump prices rising from around ₦860 to about ₦1,000 per litre. The move caused public concern and raised alarms over the continued volatility of petroleum product pricing tied to foreign exchange fluctuations.
Shortly after, President Bola Ahmed Tinubu responded by dismissing Mele Kyari and the entire NNPCL board. A new 11-man board was appointed, with Bashir Ojulari as Group Chief Executive Officer and Ahmadu Kida as Non-Executive Chairman.
With the resumption of the Naira-for-Crude initiative, economic experts and stakeholders expect some relief for consumers and a gradual reduction in the pressure on the US dollar. The policy’s reimplementation is also seen as a critical step toward ensuring more stable petrol prices and encouraging self-sufficiency through domestic refining.