Naira-for-crude policy still in effect, FG tells Dangote, others

• Published On: 10 April 2025 at 07:04

The Federal Government has emphasised that its naira-for-crude effort with local refineries is a long-term strategy for fostering sustainable domestic refining.

The Nigerian government has announced that the naira-for-crude scheme will continue, despite the NNPC's decision to stop it under former CEO Mele Kyari.

During a meeting with Dangote Refinery representatives on Tuesday, Finance Minister Wale Edun emphasised that the project is still active.

Last month, NNPCL terminated the naira-for-crude oil swap agreement with local refiners, including Dangote Refinery and other private operators.

The naira-for-crude deal, which went into effect on October 1, 2024, allowed local refiners to purchase crude oil in naira rather than dollars.

This project sought to increase domestic refining capacity, reduce dependency on imported petroleum products, and stabilise the local currency by relieving pressure on foreign exchange reserves.

According to sources acquainted with the subject, the NNPC has informed local refiners that its crude oil production has already been allocated to forward contracts, leaving no supply for domestic refineries.

This is despite claims of increased oil output in Nigeria following the implementation of the naira-for-crude agreement.