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The Federal Executive Council has directed the full implementation of the Naira-Fror-Crude agreement suspended by local oil rectors in new encouragement to strengthen Nigerian energy security and reduce dependence on foreign exchange.
The Ministry of Finance confirmed this development on Wednesday through a post on the official handle of X (previously Twitter), entitled “Renewal of Sales of Oil Products and Raw in Naira Initiatives.”
This initiative, which was originally launched as a six -month pilot involving the Federal Government, the Nigeria National Petroleum Company Limited (NNPCL), and Dangote Petroleum Refinery, were designed to allow the purchase of local petroleum products in Naira. The first phase ends on March 31, 2025, without formal renewal, encourages dangote refineries to suspend sales based on the agreement.
However, the latest update indicates a shift from trial to permanent. At a high-level review meeting held on Tuesday, the technical sub-communities that oversee the project reiterated the government’s commitment to fully activate the policies as a stop-gap, but as a long-term strategy to reshape the petroleum market.
Also read: NNPCL denies ending Naira-For-Crude’s contract with Dangote Refinery
“This is not a temporary intervention or is bound by time,” the committee said in his statement. “This is the main policy direction aimed at supporting sustainable local purification, strengthening energy security, and reducing state dependence on foreign exchange for the purchase of petroleum products.”
This meeting was held to assess progress, complete the bottleneck, and map the next steps to enforce national initiatives. Stakeholders from all energy and financial sectors reportedly expressed optimism about the potential plans to stabilize naira and stimulate domestic production.
The policy, when it is fully operational, is expected to help protect the impact of volatile global oil prices and foreign exchange rates, while also encouraging investment in Nigerian purification capacity.
Although the initial phase ended without a formal extension, new direction effectively revived the agreements that were likely to be welcomed by supporters of economic independence and energy sector reform.
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