The Federal Executive Council has ordered the full and sustained implementation of the Naira-for-Crude initiative, a policy aimed at supporting local petroleum refining and reducing Nigeria’s dependence on foreign exchange for fuel-related transactions.
The Ministry of Finance confirmed this development in an official update on X titled “Update on the Crude and Refined Product Sales in Naira Initiative,” following a strategic review meeting held on Tuesday.
The Naira-for-Crude policy had earlier taken effect as a six-month deal involving the Federal Government, the Nigerian National Petroleum Company Limited, and the Dangote Petroleum Refinery. That initial phase expired on March 31, 2025, and has not yet been renewed. As a result, the Dangote refinery halted its sale of refined petroleum products in naira.
Despite this, officials have clarified that the policy is not a temporary arrangement. According to the update from the Technical Sub-Committee overseeing the initiative, the directive is now a core part of Nigeria’s long-term strategy to strengthen local refining capacity, improve energy security, and curb dollar outflows in the oil sector.
The statement noted that the Tuesday meeting focused on assessing progress and resolving ongoing implementation challenges, with stakeholders reaffirming their commitment to the policy’s full rollout.
By deepening the Naira-for-Crude model, the government aims to stabilize the domestic petroleum market, conserve foreign exchange reserves, and drive a shift toward a more self-sufficient energy framework in the country.
