FEC Directs Full Implementation of Suspended Naira-for-Crude Policy to Boost Local Refining, Cut Dollar Demand in Petroleum Sector
The Federal Executive Council (FEC) has officially ordered the full implementation of the suspended Naira-for-Crude policy, a key initiative aimed at strengthening Nigeria’s economic sovereignty and reducing dependence on foreign exchange for petroleum transactions.
This directive was announced by the Ministry of Finance via its official X handle on Wednesday in an update titled, “Update on the Crude and Refined Product Sales in Naira Initiative.”
The first phase of the six-month agreement, involving the Federal Government, the Nigerian National Petroleum Company (NNPC) Limited, and Dangote Petroleum Refinery, ended on March 31, 2025. Due to its non-renewal, the Dangote refinery halted the sale of refined products in Naira. However, the new update clarifies that the policy is not temporary but a long-term national strategy.
According to the Ministry, the Naira-for-Crude initiative is designed to support sustainable local refining, ensure energy security, and stabilize the forex market by reducing the demand for dollars in the domestic petroleum sector.
This development followed a high-level meeting held on Tuesday to evaluate the initiative’s progress and address ongoing implementation challenges. The Technical Sub-Committee overseeing the policy reaffirmed the government’s commitment to its full execution.
“The Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive,” the Ministry emphasized, “structured to encourage investment in local refining infrastructure and reduce reliance on imported petroleum products.”
The government acknowledged the complexities involved in transitioning to the new system but assured that existing issues are being addressed through a coordinated inter-agency approach.
Present at the meeting were Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; Executive Chairman of the Federal Inland Revenue Service and Chair of the Technical Sub-Committee, Mr. Zacch Adedeji; NNPC CFO, Mr. Dapo Segun; the NNPC Refineries Coordinator; and senior representatives from Dangote Refinery, CBN, Nigerian Ports Authority, Afreximbank, and key regulatory agencies.
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