The Federal Government has hailed the recent milestones recorded under the revived naira-for-crude oil initiative, a bold economic strategy aimed at strengthening the Nigerian naira, enhancing local refining capacity, and boosting energy security.
This naira-for-crude oil policy commendation came at a strategic follow-up session of the Technical Sub-Committee on Crude and Refined Product Sales in Naira, held in Abuja on Thursday. Presiding over the high-level meeting was the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who praised the inter-agency collaboration that has driven the renewed momentum of the initiative.
The naira-for-crude policy mandates the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to local refineries—including the Dangote Petroleum Refinery—in naira rather than U.S. dollars. Initially approved in 2024 by the Federal Executive Council, the initiative seeks to reduce Nigeria’s dependence on foreign exchange for energy transactions and stabilize the local currency.
According to an official post from the Federal Ministry of Finance, the NNPCL presented a crude delivery report highlighting the volume allocated for domestic refining. Likewise, the Nigerian Midstream and Downstream Petroleum Regulatory Authority submitted a detailed production update from local refining operators, particularly the Dangote refinery.
The meeting saw the attendance of top government and industry players, including the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji; Special Adviser to the President on Energy, Ms. Olu Verheijen; and senior officials from the Nigerian Upstream Petroleum Regulatory Commission and Nigerian Ports Authority.
Speaking at the event, Edun lauded the ongoing collaboration among regulatory bodies and expressed optimism about the initiative’s long-term impact on Nigeria’s economic resilience. “The synergy we are witnessing among institutions is yielding positive outcomes. This initiative is a crucial part of President Bola Tinubu’s economic blueprint to stabilize the naira, deepen energy security, and ensure value addition within Nigeria,” he stated.
However, the journey has not been without setbacks. In March 2025, the Dangote refinery, which boasts a capacity of 650,000 barrels per day, suspended naira-denominated crude purchases citing a misalignment between its naira sales and dollar-based crude obligations. The temporary halt sparked concerns about the initiative’s sustainability.
But three weeks later, under a new NNPCL leadership, talks were revived, and crude oil transactions in naira resumed. The move reportedly contributed to a drop in the pump price of Premium Motor Spirit (petrol), now selling at around N915 per litre, signaling immediate relief for consumers.
Industry experts have noted that the policy—if fully implemented—could drastically reduce the pressure on the foreign exchange market, promote price stability in the downstream sector, and support the naira’s recovery against the dollar.
In its July 2024 directive, the Federal Executive Council had emphasized the importance of local crude sales in naira to mitigate exchange rate shocks and incentivize domestic refining. With this renewed push, the Tinubu administration appears committed to seeing the initiative through.
Stakeholders at the meeting reiterated their dedication to smooth execution and alignment with broader economic reforms, particularly in the energy sector. “Our shared commitment is evident, and we remain focused on implementing this strategic initiative efficiently,” a joint statement from the meeting concluded.
As the government continues to monitor progress through inter-agency reviews and stakeholder engagement, the naira-for-crude policy stands as a potential game-changer in Nigeria’s quest for energy self-sufficiency and currency stability.