The Federal Government has commenced full implementation of the Naira-for-Crude policy, aimed at encouraging local refining of petroleum products and strengthen the country’s currency against others globally.
It added that the policy which would reduce the country’s dependence on foreign exchange to secure the product for usage inside Nigeria would be indefinitely against the duration earlier imposed on it.
This came days after the pilot phase of the policy ended on March 31, 2025, and was not renewed, prompting the Dangote refinery to suspend sales of refined products in naira.
The directive followed expiration of the initial six-month pilot phase of the agreement involving the Federal Government, the Nigerian National Petroleum Company Limited (NNPC), and the Dangote Petroleum Refinery.
This was disclosed by the Ministry of Finance on Wednesday through a statement made available to newsmen after the Federal Executive Council (FEC) meeting in Abuja.
“The Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative convened an update meeting on Tuesday to review progress and address ongoing implementation matters.
“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council.
“Thus, the Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
The initiative, first introduced in 2024, was developed to stabilize the naira, conserve forex reserves, and incentivize local refiners to operate more efficiently and competitively.
