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Abuja – Nigeria’s Federal Executive Council has ordered the full implementation of the Naira-for-Crude agreement with domestic oil refiners. This policy requires crude oil sales to local refineries and the sale of refined products to be done in Naira. The goal is to reduce Nigeria’s need for foreign exchange for fuel, strengthen the Naira, and increase local refining. This decision followed a meeting reviewing the policy’s progress.
Long-Term Energy Strategy
The Naira-for-Crude agreement is part of Nigeria’s long-term energy plan, not a temporary measure. It aims to support a sustainable local refining sector and improve national energy security, reducing reliance on foreign currency for fuel. A technical committee confirmed the initiative’s goal is to bolster energy security and limit foreign exchange use in the domestic petroleum market.
Addressing Implementation
The government acknowledges challenges in implementing the Naira-for-Crude agreement but states they are being addressed through coordination among stakeholders. The policy will remain if it serves public interest and economic goals. The Ministry of Finance, NNPC Limited, and Dangote Petroleum Refinery participated in recent implementation discussions.
