- The Federal Government said it is committed to the full implementation of the naira-for-crude initiative
- It said the initiative is a long-term plan to reduce importation and bolster the naira
- The government said efforts are being made to address emerging challenges
The Federal Government has said it is committed to the full implementation of the suspended naira-for-crude agreement with local refiners.
The government stated that the initiative is not time-bound but a long-term plan to reduce the importation of petroleum products and Nigeria’s dependence on foreign exchange for petroleum, as well as to bolster the country’s energy security.
The Ministry of Finance disclosed this in a post shared on its official X handle titled ‘Update on the Crude and Refined Product Sales in Naira Initiative’ on Wednesday, April 9.
The ministry gave the update following a meeting of the technical sub-committee on the renegotiation of the agreement on Tuesday, April 8, to review progress and tackle ongoing issues.
The statement read, “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.”
Government commits to address emerging challenges
The statement further stated that the policy aims to foster energy security and encourage investment in domestic refining infrastructure.
The ministry acknowledged that the policy shift comes with complexities but reaffirmed the government’s commitment to addressing the challenges.
“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,” it added.
The statement added that the meeting was attended by the Chairman of the Implementation Committee and Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; the Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji; the Chief Financial Officer of NNPC Limited, Mr Dapo Segun; the Coordinator of NNPC Refineries; Management of NNPC Trading.
Also present were representatives from Dangote Petroleum Refinery and Petrochemicals, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Ports Authority, Afreximbank, and the Secretary of the Committee, Hauwa Ibrahim.
Dangote Refinery temporarily halted petrol supply in naira
Recall that on Wednesday, March 19, Dangote Refinery announced a temporary halt in the supply of petroleum products in naira after the first phase of the naira-for-crude agreement ended.
The refinery said the decision was to avoid a mismatch between sales proceeds and crude oil purchase obligations, which are currently denominated in US dollars.
Dangote Refinery’s decision follows reports that the Nigerian National Petroleum Company Limited (NNPCL) might have stopped the sale of crude in naira to the Dangote Refinery.
The naira-for-crude deal, which officially commenced on October 1, 2024, following approval by the Federal Executive Council (FEC), was designed to supply domestic refineries with crude oil in exchange for refined petroleum products.
Nigeria to sell crude oil in naira to boost local refineries, economy
Meanwhile, TheRadar earlier reported that the Federal Government said the introduction of the sale of crude oil in naira was a strategic step towards enhancing the operational efficiency of local refineries, as well as reducing foreign exchange risks and transaction costs.
This initiative, which is part of broader energy sector reforms, was disclosed by President Bola Tinubu during the opening of the eighth edition of the Nigeria International Energy Summit (NIES) in Abuja on Tuesday.
