The Nigerian government has reaffirmed the indefinite continuation of its Naira-for-Crude deal with Dangote Refinery. The policy aims to support local refining, bolster energy security, and reduce reliance on foreign exchange. Despite challenges, the initiative remains a key directive for national economic growth.
The Nigerian government has reaffirmed its commitment to the long-term viability of the Naira-for-Crude deal with Dangote Refinery and other local refineries. The Technical Sub-Committee on Crude and Refined Product Sales in Naira provided an update on Wednesday, following a meeting with stakeholders to address concerns and implementation challenges.
The initiative, which began as part of a broader policy to support local refining, and energy security, and reduce the nation's reliance on foreign currency, is not a temporary measure. The government emphasized that the agreement will continue indefinitely, aligning with national economic objectives as long as it serves the public interest.
Despite challenges in its implementation, which have led to disruptions in the petroleum market, such as the suspension of Dangote Refinery's naira-based sales on March 19, government officials assured that coordinated efforts are underway to resolve these issues. The Finance Minister, Wale Edun, and other key stakeholders, including representatives from NNPC Limited, Dangote Petroleum Refinery, and the Central Bank of Nigeria, attended the meeting to discuss the next steps.
The deal aims to create a sustainable domestic refining sector and reduce Nigeria's dependence on foreign exchange for petroleum imports. However, the temporary disruptions caused by the deal have been linked to rising fuel prices, causing concerns among the public and policymakers alike.
