The Nigerian government has reaffirmed its commitment to the Naira-for-Crude policy, ensuring local refineries continue buying crude oil in naira. Officials dismissed speculation of discontinuation, confirming ongoing discussions for a renewed agreement. The policy aims to boost local refining and stabilize the economy amid currency fluctuations.
The Nigerian government has reaffirmed its commitment to the Naira-for-Crude policy, dispelling concerns about its possible discontinuation. Dr. Adedeji, chairman of the Technical Sub-Committee on the policy, emphasized that the framework allowing local refineries to purchase crude oil in naira will remain in place.
His statement followed speculation that the arrangement might end, especially after the Nigerian National Petroleum Company Limited (NNPCL) indicated that its current contract with Dangote Refinery would expire in March 2025. However, NNPCL clarified that discussions for a new deal are already underway.
Under this policy, Nigerian refineries have been able to buy crude oil using the local currency instead of relying on dollars, reducing pressure on foreign exchange reserves and supporting the economy. Since October 2024, over 48 million barrels have been supplied to Dangote Refinery through this initiative, with total deliveries exceeding 84 million barrels since the facility began operations in 2023.
Dr. Adedeji assured that all eligible refineries could continue accessing crude oil under the program as long as they comply with industry regulations. The policy, he added, ensures stability in the domestic crude market, promotes efficiency, and strengthens the local refining sector.
NNPCL also reiterated its dedication to sustaining crude supply to local refineries under mutually agreed terms. As discussions progress for a renewed agreement, officials maintain that the policy is a crucial component of Nigeria’s economic strategy.
