FG reaffirms naira-for-crude deal with Dangote refinery

Nigeria confirms the continuation of the naira-for-crude deal with Dangote Refinery, highlighting its role in supporting local refining and energy security

 

[dropcap]T[/dropcap]he Nigerian government has reaffirmed that the naira-for-crude sale agreement with Dangote Refinery, along with other local refineries, remains in effect.

Also read: Naira-for-Crude policy faces uncertainty as Nigeria’s Dangote Refinery stops naira transactions

This declaration was made following a meeting of the Technical Sub-Committee on the Crude and Refined Product Sales in Naira Initiative, which took place on Tuesday.

The initiative, facilitated through the Nigerian National Petroleum Company Limited (NNPCL), is not a temporary measure but a long-term policy aimed at promoting sustainable local refining, enhancing energy security, and reducing Nigeria’s reliance on foreign exchange in the domestic petroleum market.

The Technical Sub-Committee clarified in a statement released on Wednesday that the naira-for-crude deal is a crucial strategic policy, not a short-term intervention.

The government emphasised that the agreement will continue as long as it supports national economic goals and aligns with the public interest.

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

The committee also acknowledged that while challenges may arise in the implementation of such a major policy shift, they are being addressed through coordinated efforts between all stakeholders involved.

The update meeting, attended by key officials including the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and other top representatives from the Nigerian government and Dangote Refinery,

reviewed the progress of the initiative and discussed ways to resolve any issues encountered.

This clarification comes after a brief suspension of the naira-for-crude deal by Dangote Refinery in March 2025, which had been triggered by a disagreement over the terms.

The suspension led to an increase in petrol prices, heightening concerns about the initiative’s stability. However, the government has now reassured the public of its commitment to the full implementation of the policy.

Also read: Dangote petroleum refinery temporarily halts petroleum sales in Naira

The government remains determined to maintain the naira-for-crude deal as a cornerstone of Nigeria’s energy policy, aiming to bolster the domestic petroleum market while addressing broader economic challenges.