The Federal Government has reinstated the crude and refined product sales in naira initiative, a strategic move that may enable Dangote Refinery to resume domestic sales of Premium Motor Spirit in local currency and subsequently reduce the price of petrol for Nigerian consumers.
The announcement was made through an official update posted by the Federal Ministry of Finance on Wednesday, following a technical sub-committee meeting held on Tuesday in Abuja.
The meeting reviewed the implementation status of the initiative, which allows local refiners to purchase crude oil in naira instead of foreign currencies.
According to the ministry, the session was attended by key stakeholders, including the Minister of Finance and Coordinating Minister of the Economy Wale Edun, Executive Chairman of the Federal Inland Revenue Service Zacch Adedeji and the Chief Financial Officer of the Nigerian National Petroleum Company Limited Dapo Segun.
Representatives from Dangote Petroleum Refinery and Petrochemicals NNPC Trading NUPRC NMDPRA CBN NPA Afreximbank and the Secretary of the committee, Hauwa Ibrahim, were also present.
The ministry stated that the initiative is not a temporary arrangement but a long-term policy directive aimed at strengthening local refining, reducing pressure on foreign exchange and improving energy security.
It added that all implementation challenges are being addressed through coordinated efforts among participating entities.
The naira-for-crude policy was first introduced in October 2024 to support domestic refineries such as Dangote and NNPC’s own facilities by enabling them to transact in local currency.
However, the deal faced temporary suspension in March 2025 due to NNPCL’s existing forward contracts that restricted the availability of crude oil for local sales in naira.
During the suspension Dangote Refinery discontinued sales of refined products in naira citing that the volume of crude oil received under the local currency agreement had been exceeded.
This forced the refinery to revert to dollar-based crude purchases leading to an increase in cost of operations and concerns about potential hikes in pump prices.
With the policy now restored, market analysts believe Dangote Refinery may resume local transactions in naira, which could reduce petrol distribution costs and contribute to lower fuel prices in the domestic market.
The government clarified that there had been no policy-level decision to terminate the initiative and reaffirmed its commitment to sustaining the framework as part of its economic strategy to reduce dependence on imported petroleum products and stabilize the naira.
If fully implemented, the crude-for-naira policy is expected to ease pressure on the foreign exchange market, support macroeconomic stability and lower the cost of fuel distribution across the country.
