The Federal Government has reaffirmed its commitment to the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative, popularly called the naira-for-crude policy, dismissing speculation of its suspension.
In a statement issued by the Ministry of Finance on Sunday, September 28, 2025, officials confirmed that the initiative remains in place despite recent reports that Dangote Refinery had suspended participation. The ministry said the matter had been “amicably resolved” and that supply of refined petroleum products would not be disrupted.
Why Naira-for-Crude Matters
The initiative was launched to conserve foreign exchange, reduce Nigeria’s reliance on dollar-denominated fuel imports, and ensure stability in the downstream oil market.
Under the scheme, crude oil is sold to domestic refineries in naira rather than U.S. dollars, while refiners supply petrol, diesel, and aviation fuel into the local market. This arrangement:
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Protects the Central Bank of Nigeria’s (CBN) limited FX reserves.
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Helps stabilise the naira by lowering demand for dollars.
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Encourages domestic refining and reduces Nigeria’s dependence on imports.
The government’s latest assurance is expected to calm fears that the refinery-labour dispute involving PENGASSAN and Dangote Refinery might derail the initiative.
Key Stakeholders at the Steering Committee
The Sunday meeting of the Steering Committee on Domestic Crude Oil and Refined Products Sales in Local Currency was chaired by Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun.
Other attendees included:
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Senator Abubakar Atiku Bagudu, Minister of Budget and Economic Planning
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Mr. Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS)
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Representatives of the NNPC Ltd., CBN, Afreximbank, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
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Senior executives of Dangote Refinery
The committee emphasised that crude sales in naira would continue without interruption, and pledged to resolve all disputes threatening downstream stability.
Energy Security and Consumer Protection
According to the ministry’s spokesperson, Mohammed Manga, the government remains committed to:
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Ensuring steady supply of refined petroleum products across Nigeria.
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Protecting consumers from shortages and price instability.
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Maintaining confidence in downstream reforms as a pillar of energy security.
Officials stressed that the naira-for-crude initiative is central to Nigeria’s economic strategy, linking foreign exchange management with the country’s fuel supply chain.
Outlook
Analysts note that the policy’s success depends heavily on the smooth operation of domestic refineries—chief among them the 650,000 barrels-per-day Dangote Refinery. The latest government intervention signals determination to protect the initiative from disruption, whether from labour disputes or supply uncertainties.
If sustained, the scheme could mark a turning point in Nigeria’s decades-long struggle with import dependency, dollar scarcity, and downstream instability.
