The Federal Government has hailed significant progress in its policy mandating the sale of crude oil and refined petroleum products in naira, a strategic initiative aimed at strengthening the local currency and deepening domestic energy security.
High-Level Review Highlights Key Milestones
During a high-level meeting of the Technical Sub-Committee on the Naira-for-Crude initiative held Thursday in Abuja, Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, led a comprehensive review of the policy’s implementation.
The session featured detailed briefings from the Nigerian National Petroleum Company Limited (NNPCL), which submitted a crude delivery report outlining allocations for local refining. Also in attendance was the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which presented an update on production output, including volumes from the Dangote Petroleum Refinery.
The Federal Inland Revenue Service (FIRS) Chairman, Mr. Zacch Adedeji, joined other key officials and industry stakeholders, including representatives from the Nigerian Ports Authority (NPA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Special Adviser to the President on Energy, Ms. Olu Verheijen, to assess the policy’s trajectory.
A post shared on the Ministry of Finance’s official X handle confirmed that participants commended the milestones reached since the last policy review, reaffirming their commitment to ensuring the seamless execution of the naira-for-crude policy.
Economic Strategy Anchored in Energy Reform
In his remarks, Edun praised the collaborative effort among government agencies and the private sector. He emphasized that the initiative aligns with President Bola Tinubu’s broader economic plan to stabilize the naira, improve in-country refining capacity, and reduce Nigeria’s dependence on foreign exchange.
“The progress we are seeing is the result of effective inter-agency cooperation. This policy is pivotal in achieving currency stability, energy self-sufficiency, and in-country value addition,” Edun said.
Initial Setback and Policy Revival
The policy, originally launched in 2024, faced a temporary setback in March 2025 when the Dangote Refinery suspended the sale of petroleum products in naira due to foreign exchange imbalances. The refinery, with a capacity of 650,000 barrels per day, cited challenges in meeting dollar-denominated crude purchase obligations while selling refined products in local currency.
However, following leadership changes at the NNPCL, the naira-for-crude deal was revived three weeks later, with crude sales to local refineries resuming in naira. This policy revival reportedly triggered a market response that saw petrol prices decline to ₦915 per litre, offering much-needed relief to consumers.
Long-Term Implications for Currency and Price Stability
Energy and economic analysts believe that maintaining the naira-for-crude arrangement will significantly reduce pressure on the U.S. dollar and contribute to long-term stability in fuel pricing. The Federal Executive Council had in July 2024 formally directed the NNPCL to transact crude oil sales with local refineries in naira, marking a key pivot in Nigeria’s petroleum fiscal policy.
By localizing transactions in the energy sector, the Federal Government aims to shield the naira from the volatility of global forex markets while incentivizing local refining and downstream investments.
Path to Energy Stability
The revival and gradual success of the naira-for-crude initiative underscore Nigeria’s broader economic reform strategy. With continued inter-agency collaboration and policy consistency, the country could be on track to achieve improved energy security, sustainable fuel pricing, and enhanced currency stability.
