“Here to stay” -FG extends Naira-for-Crude deal

The Federal Government has announced that the naira-for-crude oil initiative will continue, following the conclusion of its first phase on March 31.

The decision was made public after a high-level meeting held on Monday, involving key stakeholders in Nigeria’s petroleum and financial sectors. Attendees included Minister of Finance Wale Edun, Chairman of the Crude-for-Naira Committee and FIRS Executive Chairman Zacch Adedeji, officials from the Dangote Petroleum Refinery, Nigerian National Petroleum Company (NNPC) Limited, and several top regulatory bodies.

Also present were representatives 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), the African Export-Import Bank (Afreximbank), and Hauwa Ibrahim, secretary of the committee.

In a statement released by the Ministry of Finance, the government emphasized that the naira-for-crude scheme is not a short-term fix, but a strategic policy aimed at reshaping Nigeria’s petroleum industry.

“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC),” the statement read.

Launched on October 1, 2024, the initiative was designed to supply local refineries with crude oil in exchange for naira payments—a move aimed at reducing the country’s dependency on foreign exchange, encouraging domestic refining, and lowering fuel import bills.

While acknowledging that “implementation challenges may arise from time to time,” the committee said those issues are being addressed collaboratively by all involved parties.

“The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” the ministry added.

The continuation of the policy comes amid recent reports of disruptions. On March 10, TheCable reported that the NNPC had temporarily suspended the initiative due to forward-selling its crude oil until 2030. A week later, Dangote Refinery also halted its naira-based petroleum sales, citing currency mismatches between sales revenues and its U.S. dollar-denominated crude purchase obligations.