Relief as FG says naira-for-crude deal still in effect, meets Dangote officials

The Federal Government has calmed some frayed nerves by confirming that the naira-for-crude initiative with local refineries, including Dangote, is a key policy directive designed to ensure sustainable local refining.

The government stressed that the initiative isn't a temporary measure, and as such, it is still in effect and will continue immediately.

The assurance, given by the Finance Minister, Wale Edun, at a meeting with representatives of the Dangote Refinery on Tuesday, April 8, 2025, overruled an earlier decision of the Nigeria National Petroleum Company Limited (NNPCL), under its former boss Mele Kyari, which tenured the naira-for-crude initiative.

This comes after the Ministry of Finance said the Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative met on Tuesday to review progress and address ongoing implementation matters.

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According to a post on its official X account on Wednesday, the Finance Ministry said the Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative met on Tuesday to review progress and address ongoing implementation matters.

The meeting had in attendance Edun, the Chairman of the Implementation Committee; Zacch Adedeji, the Chairman of the Technical Sub-Committee and Chairman of the Federal Inland Revenue Service (FIRS); Dapo Segun, the Chief Financial Officer of NNPCL; the Coordinator of NNPC Refineries; the management of NNPC Trading; and representatives of Dangote Petroleum Refinery and Petrochemicals.

“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 partly read.

“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.

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

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

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Other attendees of the meeting include senior officials 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), a representative of Afreximbank, and the Secretary of the Committee, Hauwa Ibrahim.