FEC orders compliance with Naira-Crude deal

The Federal Executive Council has mandated the full implementation of the previously suspended Naira-for-Crude agreement involving local refineries.

The Ministry of Finance made the disclosure on Wednesday via an official statement posted to its X handle, titled “Update on the Crude and Refined Product Sales in Naira Initiative.”

The move follows a high-level meeting held Tuesday involving key government and industry stakeholders to evaluate progress and address implementation challenges.

The Naira-for-Crude initiative, which began as a six-month pilot deal between the Federal Government, Nigerian National Petroleum Company Limited, NNPCL, and Dangote Petroleum Refinery, ended on March 31. Due to the lack of renewal, Dangote Refinery halted sales of refined petroleum products in naira.

At Tuesday’s meeting, stakeholders reaffirmed their commitment to the policy, describing it as a long-term strategy designed to reduce dollar dominance in Nigeria’s petroleum sector, support sustainable local refining, and enhance energy security.

Present at the meeting were top government officials and private sector representatives, including the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who chairs the Implementation Committee; and the Executive Chairman of the Federal Inland Revenue Service, Mr. Zacch Adedeji, who heads the Technical Sub-Committee.

Others in attendance included NNPC’s Chief Financial Officer, Mr. Dapo Segun; the Coordinator of NNPC Refineries; management of NNPC Trading; representatives of Dangote Petroleum Refinery and Petrochemicals; and senior officials from the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Central Bank of Nigeria, the Nigerian Ports Authority, and Afreximbank.

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The committee emphasized that the initiative is not a temporary or stopgap measure. Rather, it is a major policy directive expected to shape Nigeria’s energy landscape for the long term.

The statement noted that the policy would remain in force as long as it continues to align with the country’s economic priorities and public interest.

“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time,” the statement read. “However, such issues are being actively addressed through coordinated efforts among all parties.”

By insisting on naira-based transactions for crude supply to local refineries, the government aims to protect Nigeria’s foreign reserves, promote the use of local currency in key sectors, and stabilize the exchange rate.

Experts say the policy could also drive investment in domestic refining and reduce dependence on imported fuel.

The full implementation of this policy marks a significant shift in Nigeria’s oil and gas operations. It aligns with broader national objectives to reform the petroleum industry, improve transparency, and reduce the economy’s vulnerability to external financial pressures.

Reported by GISTMATE