The Federal Executive Council (FEC) has officially directed the full implementation of the Naira-for-Crude policy, aiming to enhance local refining capacity and reduce Nigeria’s reliance on foreign exchange for petroleum products.
Initially introduced in July 2024, the policy mandates the sale of crude oil to domestic refineries in Naira, with the expectation that these refineries will, in turn, sell their refined products within the Nigerian market using the same currency.
The first phase of this six-month agreement, involving the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Petroleum Refinery, commenced on October 1, 2024, and concluded on March 31, 2025. Following its expiration, the Dangote refinery ceased selling refined petroleum products in Naira due to the non-renewal of the deal.
In a recent update, the Ministry of Finance emphasized that the Naira-for-Crude initiative is a long-term policy designed to support sustainable local refining, bolster energy security, and diminish dependence on foreign exchange in the domestic petroleum market. Stakeholders have reaffirmed their commitment to the full implementation of this strategic initiative as directed by the FEC.
