Relief may have come the way of Nigerians as the Federal Executive Council (FEC) Wednesday directed the full implementation of the suspended Naira-for-Crude agreement, aimed at encouraging local refining and reducing Nigeria’s dependence on foreign exchange for petroleum products.
This was disclosed by the Ministry of Finance in a statement posted on its official X handle.
The decision was consequent upon a strategic meeting held Tuesday to review progress and resolve the logjam around the deal.
The post, titled “Update on the Crude and Refined Product Sales in Naira Initiative,” followed the expiration of the initial six-month pilot phase of the agreement involving the federal government, the Nigerian National Petroleum Company Limited (NNPCL), and the Dangote Petroleum Refinery.
The pilot phase which ended March 31, 2025, was not renewed, prompting the Dangote refinery to suspend sales of refined products in naira.
The development led to an increase in the price of petroleum which had hitherto come down before the end of the deal.
According to experts, with the latest decision by the federal government, Nigerians are expected to experience some relief from high, dollar-denominated imported fuel with the resumption of the initiative.
…FEC’s order
At the meeting were Minister of Finance and Coordinating Minister of the Economy, Wale Edun who chairs the Implementation Committee, Chairman of the Technical Sub-Committee and Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, the Chief Financial Officer of NNPCL Dapo Segun, the Coordinator of NNPC Refineries; Management of NNPC Trading, and representatives of Dangote Petroleum Refinery and Petrochemicals.
Others at the meeting were senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), representative of Afreximbank, as well as the Secretary of the Committee, Hauwa Ibrahim.
The statement issued after the meeting by a director in the ministry, Mohammed Manga, said: “The Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative has today (Wednesday) convened an update meeting held in Abuja with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, presiding.
“The meeting reviewed progress and addressed ongoing implementation matters.
“The stakeholders reaffirmed the government’s commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC).
“It stated that the Crude and Refined Product Sales in Naira initiative is 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 Committee acknowledges that implementation challenges may arise from time to time. However, such issues are being actively addressed through coordinated efforts among all relevant parties.
“The initiative remains in effect and will continue for as long as it aligns with the public interest and supports the national economy.
“The meeting underscored the government’s commitment to the Crude and Refined Product Sales in Naira initiative, a strategic move expected to have a lasting impact on Nigeria’s economy, fostering growth, stability, and self-sufficiency. This bold step positions Nigeria for success in the years to come,” Manga further added.
The initiative, which was first introduced in 2024, was developed to stabilise the naira, conserve forex reserves, and incentivise local refiners to operate more efficiently and competitively.
…ECCIMA’s call