Nigerian Government Says Crude-For Naira Policy To Continue, Vows Initiative Will Remain in National Interest
The federal government on Wednesday assured Nigerians that its Crude-for-Naira initiative would continue for as long as it aligns with public interest and supports the national economy. The assurance followed a meeting in Abuja of the Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative, which was chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun. The sale of crude oil and refined petroleum products in naira to local refineries commenced on October 1, 2024, in a bid to bolster supply, save the country of the much-needed hundreds of millions of dollars in petroleum products imports, and ultimately reduce pump prices. However, on March 10, 2025, the Nigerian National Petroleum Company Limited (NNPCL) halted the initiative until 2030, having reportedly sold all its crude in advance. In response to that, on March 19, the Dangote Petroleum Refinery announced a temporary halt on the sale of petroleum products in naira. The decision to halt sales in naira, the company had said, was “necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.” It added: “To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received.” But after a meeting of the Technical Sub-Committee headed by Edun on Wednesday, the federal government said the initiative would forge ahead after the committee reviewed progress and addressed ongoing implementation matters. A statement issued by a Director in the Finance Ministry, Mohammed Manga, stated that the meeting was attended by Edun, the Chairman of the Implementation Committee who doubles as the Minister of Finance and Coordinating Minister of the Economy; the Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji; the Chief Financial Officer of NNPC Limited, Mr. Dapo Segun; the Coordinator of NNPC Refineries; Management of NNPC Trading; representatives of Dangote Petroleum Refinery and Petrochemicals. Also in attendance were 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 statement captioned, ‘Update on the Crude and Refined Product Sales in Naira Initiative’ read: “The Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative has today (Wednesday) convened an update meeting held in Abuja with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, presiding. “The meeting reviewed progress and addressed ongoing implementation matters. “The stakeholders reaffirmed the government’s commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC). “It stated that the Crude and Refined Product Sales in Naira initiative is a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market. “The Committee acknowledges that implementation challenges may arise from time to time. However, such issues are being actively addressed through coordinated efforts among all relevant parties. “The initiative remains in effect and will continue for as long as it aligns with the public interest and supports the national economy. “The meeting underscored the government’s commitment to the Crude and Refined Product Sales in Naira initiative, a strategic move expected to have a lasting impact on Nigeria’s economy, fostering growth, stability, and self-sufficiency. This bold step positions Nigeria for success in the years to come.” Commenting on the development, the Centre for the Promotion of Private Enterprise (CPPE) commended the federal government for restoring the Naira for crude sale to the Dangote Refinery. The Chief Executive Officer of CPPE, Dr. Muda Yusuf, gave this commendation on Wednesday. He said: “This is commendable and it is possibly an indication of the good things to come under the new leadership of the NNPC with the support of the coordinating minister of the economy. “It makes sense both from an economic and nationalistic perspectives. “It is even more remarkable that the arrangement is being fully normalised as part of the overall economic management philosophy. It is no longer ad hoc.” He explained that this is about energy security, self-reliance, backward and forward integration, multiplier effects and conservation of foreign exchange. “Our plea is that the government should not spare any effort in the promotion of private investment in the economy. “And this should be the norm for all sectors of the economy. It is not only a patriotic duty but also a fundamental responsibility of government. “The role of government is to facilitate, not frustrate private investment. This is the pathway for sustainable economic growth and development,” he said
Admin | 2025-04-10 08:12:06