The federal government has announced that the naira-for-crude oil deal will persist following the conclusion of its initial phase on March 31.
This confirmation came from the Ministry of Finance on Monday, during a meeting attended by key figures, including Wale Edun, the Minister of Finance, and Zacch Adedeji, the Chairman of the committee and Executive Chairman of the Federal Inland Revenue Service (FIRS).
The meeting also included representatives from Dangote Petroleum Refinery, Dapo Segun, the Chief Financial Officer of Nigerian National Petroleum Company (NNPC) Limited, NNPC Trading management, and senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Additional stakeholders present were senior members from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), representatives from the African Export-Import Bank (Afreximbank), and Hauwa Ibrahim, the committee’s secretary.
The Ministry stated, “The stakeholders reaffirmed the government’s unwavering commitment to the comprehensive execution of this strategic initiative, as mandated by the Federal Executive Council (FEC).”
The Crude and Refined Product Sales in Naira initiative is characterized as a fundamental policy directive rather than a temporary measure. Its objectives include fostering sustainable local refining, enhancing energy security, and minimizing dependence on foreign exchange in the domestic petroleum market.
The committee acknowledged potential implementation challenges inherent in any significant policy change, emphasizing that these issues are being proactively managed through collaborative efforts among all involved parties.
“The initiative will remain active and continue as long as it serves the public interest and aligns with national economic goals,” the ministry added.
Initiated on October 1, 2024, the sale of crude oil and refined petroleum products in naira aims to bolster supply, save the nation millions in petroleum product imports, and ultimately lower fuel prices.
On March 10, TheCable reported that NNPC had suspended the naira-for-crude deal until 2030, citing that the government-owned entity had forward-sold all its crude oil.
Subsequently, nine days later, Dangote Refinery announced a temporary halt in the sale of petroleum products in naira. The refinery stated that this decision was “essential to prevent a discrepancy between our sales revenue and our crude oil purchasing commitments, which are currently in U.S. dollars.”
