The Federal Government through the Ministry of Finance has reaffirmed that the naira-for-crude initiative with local refineries, including Dangote refinery remains active. The ministry emphasized that initiative will continue for as long as it aligns with the public interest and supports national economic objectives.
The Ministry stated that the initiative, initially approved by the Federal Executive Council (FEC), is a long-term strategic plan rather than a temporary or provisional solution. It also noted that stakeholders have reconvened to reaffirm their strong support and continued dedication to seeing the initiative through to successful execution.
The policy, which requires the sale of crude oil and refined petroleum products in Naira, is designed to boost the country’s economic independence, capabilities, and ease pressure on the foreign exchange market by reducing dollar demand in local petroleum transactions. According to the, the move is also intended to strengthen energy security and attract investment into the country’s refining sector
However, on March 10, 2025, the Nigerian National Petroleum Company Limited (NNPCL) halted the initiative until 2030, having reportedly sold all its crude in advance. In response to that, on March 19, the Dangote Petroleum Refinery announced a temporary suspension on the sale of petroleum products in naira.
The decision to halt sales in naira, the company had said, was “necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.” It added: “To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received.”
However, following the review by the Technical Sub-Committee headed by Edun, the federal government reaffirmed its commitment to the naira-for-crude policy. The initiative will proceed after the committee reviews progress and addresses ongoing implementation matters.
In a statement, the Ministry reiterated that“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.”
The government acknowledged the complexity of the transition but assured that ongoing challenges are being tackled methodically. “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 Ministry noted.
The meeting reaffirmed the government’s commitment to the Crude and Refined Product Sales in Naira initiative, a strategic decision anticipated to drive long-term economic benefits for Nigeria by promoting growth, stability, and greater self-reliance. This decisive action sets the stage for a more prosperous future.
