Crude-for-Naira Initiative Remains In Place, Says Federal Gov’t

The federal government has said the implementation of its policy on crude oil and refined product sales in Naira initiative remains in place and not time bound.

Federal Ministry of Finance made the disclosure in a statement posted on its website on Wednesday.

According to the statement, the decision was taken by the technical cub-committee on the Crude and Refined Product Sales in Naira initiative at its update meeting on Tuesday to review progress and address ongoing implementation matters.

“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 statement said.

It added that, “The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives.”

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The decision of the government to extend implementation of the idea is coming days after local refineries, especially Dangote Refinery, jerked up prices of petrol which it attributed to buying the crude from the local and international market in US dollars.

The federal government’s decision to extend the implementation of the policy is believed to be a response to the drop in prices of crude at the international market.

Crude oil is the major source of revenue for the country. The March 2025 deadline for the policy had elapsed without official statement to extend it, forcing the local refineries to increase prices of refined crude.

As crude prices slipped $10 below the projected $75 per barrel, the projected revenue became unrealistic, especially with the failure of the federal government to ramp up daily crude oil production to two (2) million barrels per day.

The statement said members of the technical committee 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,” the statement read in part.

The meeting was said to be attended by the chairman of the implementation committee, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; chairman of the technical sub-committee and executive chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji; the chief financial officer of NNPC Limited, Mr. Dapo Segun; the Coordinator of NNPC Refineries and management of NNPC trading.

Others at the meeting are representatives of Dangote Petroleum Refinery and Petrochemicals and 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.