The Federal Executive Council (FEC) has directed the full implementation of the Naira-for-Crude agreement, a policy aimed at reducing Nigeria’s reliance on foreign exchange for petroleum products and boosting local refining capacity.
READ ALSO: Dangote Refinery suspends petroleum sales in naira
The Naira-for-Crude deal, introduced on October 1, 2024, allows local refineries, including Dangote Petroleum Refinery, to purchase crude oil in naira instead of U.S. dollars. This move aimed to reduce Nigeria’s reliance on foreign exchange, support local refining, and cut down on imported petroleum products. However, the Nigerian National Petroleum Company (NNPC) suspended the agreement, citing commitments to forward contracts with international buyers.
In a post on its official X handle on Wednesday, the Ministry of Finance confirmed the government’s decision to reinstate the policy, stating that it is not a temporary measure but a long-term directive to support sustainable local refining.
The announcement followed a meeting held on Tuesday, where key stakeholders reviewed the progress of the initiative and addressed challenges related to its implementation. The meeting reaffirmed the government’s commitment to the Naira-for-Crude agreement as a vital part of its economic and energy strategy.
