Naira-for-Crude: FG Gives Strict Orders to NNPC, NMDPRA to Sell Crude Oil to Dangote, Others
- The federal government has directed the full implementation of the naira-for-crude agreement with local refineries
- The ministry of Finance disclosed that the initiative is not a temporary but a lasting plan to reduce Nigeria’s dependence on FX for petroleum products
- The first phase of the six-month deal ended on March 31, 2025, and is yet to be renewed by the parties
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Federal Executive Council (FEC) has officially directed the complete application of the collapsed naira-for-crude agreement with local refineries.
The Ministry of Finance revealed this on its X handle as it provided an update on the crude and refined product sales in the naira scheme on Wednesday, April 9, 2025.
Source: Getty Images
Dangote commences sale of petrol in dollars
Legit.ng earlier reported that the first phase of the naira-for-crude deal between the Nigerian government, the Nigerian National Petroleum Company Limited (NNPC), and the Dangote Refinery elapsed on March 31, 2025.
The deal has yet to be renewed, leading to the Dangote Refinery suspending the sale of refined petroleum products in the local currency.
In the update, the committee disclosed that the policy is not a temporary but a long-term plan to reduce Nigeria’s reliance on foreign exchange for petroleum products.
The development followed a meeting on Tuesday, April 8, 2025, to review and address the ongoing issues.
The naira-for-crude deal is timeless
The committee added that the initiative is not a time-bound intervention, but an essential policy directive to support sustainable local refining and boost energy security.
According to the statement, the technical sub-committee on the crude and refined product sales in the naira scheme met to provide an update on and review the progress and address ongoing implementation issues.
The stakeholders reportedly reaffirmed the government’s commitment to implementing the strategic initiative.
The initiative was designed to cut dependence on FX in the domestic petroleum market.
The policy is aimed at boosting Nigeria’s economic sovereignty, enhancing local refining capacity, and stabilising the local market by reducing the demand for US dollars in domestic petroleum transactions.
The initiative also mandates the transaction of crude and refined petroleum products in naira.
Analysts hail renewed deal
The finance minister explained that the initiative is designed to enhance energy security and encourage investment in domestic refining infrastructure.
Energy policy analysts have hailed the move, describing it as timely when petroleum products, especially PMS are rising.
Source: UGC
They say the continuation of the policy will lead to reduced petroleum product prices in the domestic market.
“If the parties can return to the deal, which caused petrol prices to crash from January to March, it will be a relief to Nigerians,” Adeola Yusuf, energy policy analyst and Team Lead at Platforms Africa, said.
“Nigerians have decried the deal’s collapse, which they attributed to the rise in petrol prices in the last two weeks, though crude oil prices in the international market also played a role,” he said.
Crude Oil Drops to $65 Per Barrel
Earlier, Legit.ng reported that there were signs that Nigerians might pay less at the pumps for petrol following the crash in the Brent crude price, which dropped to $65 per barrel from $69.90 in the global market.
Brent, the global benchmark for crude prices, fell on Friday, April 4, 2025, as President Donald Trump embarked on a tariff hike spree.
Experts say the announcement led to a global stock price crash, affecting oil prices, and Trump’s call for the Organisation of Petroleum Exporting Countries (OPEC) to raise crude output also affected prices.
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Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Kola Muhammed (Copyeditor) Kola Muhammed is an experienced editor and content strategist who has overseen content and public relations strategies for some of the biggest (media) brands in Sub-Saharan Africa. He has over 5 years of experience in copyediting.
