FEC Orders Full Implementation Of Naira-for-Crude Agreement, Meets With Dangote Refinery To Boost Production Of Petrol

The Federal Executive Council has formally ordered the full implementation of the previously suspended Naira-for-Crude agreement with local refiners, so as to enhance the local production of refined Premium Motor Spirit , popularly known as Petrol and reduce drastically importation of the product into Nigeria 

The Federal Government clarified that the initiative was not a temporary measure but a “key policy directive designed to support sustainable local refining”.

The government also said the initiative is still in effect and will continue immediately, overruling the decision of the NNPCL under its former boss Mele Kyari which tenured the initiative.

The Minister of Finance Wale Edun at a meeting with representatives of the Dangote Refinery on Tuesday said the naira-for-crude is still in effect.

Others at the meeting include senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), representative of Afreximbank, as well as the Secretary of the Committee, Hauwa Ibrahim.

“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC).

“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".

"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,” the statement read.

It will be recalled that the Federal Executive Council (FEC) in July 2024 directed the NNPCL to sell crude oil to Dangote Refinery and other local refineries in naira and not in United States’ greenback, as part of strategic moves to 

reduce the strain on the US dollars and guarantee price stability of petroleum products

The arrangement later expired by the end of last March, 2025, which generated controversy between NNPCL and Dangote Refinery Company