JUST IN: “Naira-for-Crude deal with Dangote Refinery to continue indefinitely” – FG
The Federal Government has announced that the naira-for-crude oil agreement with the Dangote Refinery and other local refineries will remain in effect indefinitely.
This was disclosed in a statement released on Wednesday by the Technical Sub-Committee on the Crude and Refined Product Sales in Naira Initiative, following a meeting with key stakeholders on Tuesday.
The committee clarified that the deal is not a temporary arrangement but a strategic policy directive aimed at promoting sustainable local refining, enhancing energy security, and reducing the country’s dependence on foreign exchange in the domestic petroleum sector.
”Thus, the Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time.
”However, such issues are being actively addressed through coordinated efforts among all parties,” the statement read.
The update comes weeks after the Dangote Refinery suspended naira-based sales of petroleum products on March 19, citing a breakdown in the naira-for-crude agreement.
The development had triggered a hike in petrol prices across the country.
According to the Ministry of Finance, stakeholders at the Tuesday meeting reaffirmed their commitment to fully implementing the initiative, in line with the directive of the Federal Executive Council (FEC).
The committee also acknowledged the existence of implementation challenges but assured that these issues are being addressed through coordinated efforts among all involved parties.
Present at the meeting were the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who serves as Chairman of the Implementation Committee; the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, who chairs the Technical Sub-Committee; Chief Financial Officer of NNPC Limited, Mr. Dapo Segun; representatives from Dangote Petroleum Refinery and Petrochemicals; and other major stakeholders.
Also in attendance were senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), Nigerian Ports Authority (NPA), Afreximbank, and the Secretary of the Committee, Hauwa Ibrahim.
