In a move that could significantly reduce the cost of petrol across Nigeria, the Federal Executive Council (FEC) has directed the full reinstatement of the naira-for-crude policy. This decision signals a renewed commitment to local refining. It also indicates a shift away from dollar-dependent fuel transactions. Industry stakeholders and market experts have welcomed this decision, describing it as a critical intervention to stabilize the petroleum market and boost the value of the naira.
Oil marketers and industry players confirm that fuel pump prices may soon decrease, following the government’s renewed implementation of the initiative that allows local refineries to purchase crude oil in naira rather than U.S. dollars. This development comes after months of public concern over the high cost of Premium Motor Spirit (PMS), commonly known as petrol, which surged following a temporary suspension of the policy in early 2025.
A major turning point is expected to come from the Dangote Refinery, Africa’s largest private refinery. Industry insiders say the company is preparing to revise its loading price downward before the end of the week. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), hinted at a substantial drop in pump prices, attributing it to the resumed sale of crude oil in naira and the anticipated pricing adjustments by Dangote Refinery.
“We believe earnestly that from now till the end of the week, Dangote refinery will announce a new price. They can’t keep citing old stock as a reason for high prices; internationally, that’s not best practice,” Ukadike stated.
The Ministry of Finance emphasized that the naira-for-crude policy is no longer a pilot scheme or short-term fix but a permanent strategy aimed at bolstering Nigeria’s refining capacity and reducing reliance on the dollar. According to a statement posted on the Ministry’s official X handle, the policy supports energy security, fosters economic resilience, and aligns with Nigeria’s long-term economic vision.
A high-level meeting chaired by Finance Minister Wale Edun and attended by key stakeholders—including representatives from the Dangote Refinery, NNPC Limited, FIRS, Nigerian Ports Authority, and the Central Bank of Nigeria—was held to review the progress of the policy and address challenges affecting implementation.
While the renewed policy is being hailed as a game-changer, members of the Crude Oil Refinery-owners Association of Nigeria (CORAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have called for broader inclusion. CORAN’s National Publicity Secretary, Eche Idoko, emphasized that all functional local refineries must benefit from the policy to maximize its impact on local fuel availability and pricing.
“The pilot phase of the initiative was limited in scope, but we believe this renewed effort should include all six operational refineries including NNPC refineries, Azikel, Edo, Niger Delta, Walter Smith, and BUA,” Idoko said.
PETROAN’s National President, Billy Gillis-Harry, echoed the sentiment, noting that a nationwide implementation of the naira-for-crude policy would not only lower prices but also enhance Nigeria’s energy independence.
Experts argue that the policy could lead to a significant reduction in Nigeria’s dollar demand for petroleum imports—historically one of the major pressures on the naira. Since the suspension of the deal earlier this year, fuel prices rose from around N860 to N960 per litre due to increased loading costs and forex volatility. The resumption of the naira policy could reverse that trend and ease the inflationary pressures facing consumers.
Vice President of IPMAN, Hammed Fashola, highlighted that the depreciation of the naira during the policy’s suspension was a major contributor to high fuel prices despite declining global crude prices.
“Now that the naira policy is back in effect, we anticipate a correction in prices. Nigerians should start seeing a reduction in pump prices very soon,” Fashola assured.
While many have lauded President Bola Tinubu for heeding industry calls and reactivating the policy, there remains public concern over widespread poverty and hunger. Stakeholders have urged the government to address these issues with the same urgency it has shown in stabilizing the energy sector.
“There’s hunger in the land. Fuel price stability is a step in the right direction, but the people need broader economic relief,” Gillis-Harry emphasized.
As Nigeria moves forward with the permanent implementation of the naira-for-crude initiative, the petroleum industry and millions of citizens are watching closely—hopeful that this bold policy shift will finally bring long-awaited relief at the pumps and improve overall economic stability.