FG Reaffirms Commitment to Crude and Refined Product Sales in Naira Policy

The Federal Government of Nigeria has once again reaffirmed its commitment to the Crude and Refined Product Sales in Naira initiative, a strategic policy designed to strengthen local refining capacity, improve energy security, and reduce dependence on foreign exchange for petroleum transactions.

This assurance was made during a high-level meeting of the Technical Sub-Committee on the initiative, held in Abuja on Tuesday. The session convened top stakeholders from the oil and gas, financial, and regulatory sectors to assess the initiative’s progress and address emerging implementation hurdles.

A Strategic, Long-Term Policy

Speaking at the meeting, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who chairs the overarching Implementation Committee, emphasized that the initiative is not a temporary fix but a core economic policy ratified by the Federal Executive Council (FEC).

Also present at the meeting were:

• Mr. Zacch Adedeji, Executive Chairman of the FIRS and Head of the Technical Sub-Committee

• Mr. Dapo Segun, Chief Financial Officer of NNPC Limited

• NNPC Refineries Coordinator

• Representatives from Dangote Petroleum Refinery & Petrochemicals

• Senior officials from NUPRC, NMDPRA, CBN, NPA, Afreximbank, and Committee Secretary Hauwa Ibrahim

Policy Goals and Challenges

In a statement issued on Wednesday, the Ministry of Finance reaffirmed that the naira-for-crude initiative is a cornerstone of Nigeria’s broader economic reform strategy.

“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time,” the statement read. “However, such issues are being actively addressed through coordinated efforts among all parties involved.”

The initiative, launched in October 2024, mandates that all domestically produced crude oil and refined products be transacted in naira. It is part of Nigeria’s strategy to:

• Ease pressure on the foreign exchange market

• Attract investment in local refining infrastructure

• Strengthen local currency usage in high-value energy transactions

• Boost self-reliance in petroleum processing

Looking Ahead

Despite ongoing hurdles—including logistical, regulatory, and financial alignment—the government insists the policy remains fully in effect and will continue “as long as it aligns with public interest and supports national economic objectives.”