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FG okays the continuance of Naira for crude oil sale 

Nigeria-oil-field. Credit: Business Insider Africa
Nigeria-oil-field. Credit: Business Insider Africa

Abuja, Nigeria

The federal government has confirmed the continuance of the naira-for-crude oil deal following the first phase, which ended on March 31.

The Federal Ministry of Finance announced the development on Monday in Abuja at the end of a technical subcommittee on the crude and refined product sales in naira initiative, meeting comprising some heads of key agencies.

These include the Minister of Finance, Wale Edun and Zacch Adedeji, the chairman of the committee and the executive chairman of the Federal Inland Revenue Service (FIRS).

Other stakeholders at the meeting include representatives of the Dangote Petroleum Refinery and Dapo Segun, the chief financial officer of Nigerian National Petroleum Company (NNPC) Limited, the coordinator of NNPC refineries; management of NNPC Trading; and senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Senior officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), representatives of the African Export-Import Bank (Afreximbank), and the secretary of the committee, Hauwa Ibrahim, were also at the meeting.

“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 ministry said.

“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.”

The ministry said the issues are being actively addressed through coordinated efforts among all parties.

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

In October 2024, the government had commenced the sale of crude oil and refined petroleum products in naira to local refineries, aimed at improving the supply of the products and saving the country from huge multi-dollar expenditures on imported products in line with the fuel subsidy removal.

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