Paragraph 1: Naira-for-Crude Policy Review and Reaffirmation
The Nigerian government convened a crucial meeting of the Technical Sub-Committee on the Naira-for-Crude Policy on Thursday, March 7, 2025, at the Ministry of Finance Headquarters in Abuja. The primary objective of this gathering was to conduct a comprehensive assessment of the policy’s progress, address any emerging challenges, and reaffirm the government’s unwavering commitment to its successful implementation. This policy, launched in October 2024, allows local refineries to purchase crude oil in naira, aiming to bolster domestic refining capacity, reduce reliance on imported petroleum products, conserve foreign exchange reserves, and ultimately stabilize and potentially lower fuel prices for Nigerian consumers.
Paragraph 2: Key Stakeholders and Their Contributions
The meeting witnessed the participation of key stakeholders representing various sectors of the Nigerian economy. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, along with the Executive Commissioner of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), joined the meeting virtually. Physical attendees included the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji; the Chief Financial Officer of the Nigerian National Petroleum Company (NNPC) Limited; the Special Adviser to the Minister, Nana Ibrahim; the Coordinator of NNPC Refineries; and representatives from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Central Bank of Nigeria (CBN), Dangote Petroleum Refinery, and NNPC Trading Ltd. Each entity presented vital data and updates relevant to their respective roles in the naira-for-crude framework.
Paragraph 3: Performance Reporting and Supply Chain Updates
The NNPC presented a detailed report outlining the volume of crude oil allocated to domestic refineries under the policy. This report provided transparency on the supply side of the arrangement, demonstrating the commitment to ensuring consistent crude oil availability for local refining. The NMDPRA, in turn, provided a comprehensive domestic production report encompassing the Dangote Petroleum Refinery and Petrochemicals, NNPC’s Warri Refinery, and the Port Harcourt Refinery. This production data offered insights into the utilization of the allocated crude oil and the output of refined products. The NUPRC further contributed by providing an update on the overall availability of crude oil for local refining, reassuring stakeholders of a sustainable supply for domestic operations.
Paragraph 4: Refinery Updates and Future Negotiations
Representatives from both Dangote Refinery and NNPC Refineries offered updates on their respective operational statuses and performance under the naira-for-crude arrangement. This information was crucial for assessing the effectiveness of the policy and identifying any bottlenecks hindering optimal refinery utilization. Earlier reports indicated that the NNPC had initiated negotiations with Dangote Refinery regarding the renewal of the naira-for-crude agreement, which was initially set to expire on March 31, 2025. This proactive approach demonstrated the government’s long-term commitment to the policy and its recognition of the need for a stable and predictable framework for domestic crude oil supply.
Paragraph 5: Clarification on Agreement Status and Policy Impact
The NNPC clarified that the initial naira-for-crude agreement with Dangote Refinery was for a six-month period, effectively addressing earlier misconceptions about the agreement’s duration. They also revealed that the 650,000 barrel-per-day capacity Dangote Refinery had received 48 million barrels of crude oil under the deal between October 2024 and March 2025, contributing significantly to the refinery’s operations. It was further disclosed that a total of 84 million barrels had been supplied to the refinery since its commencement of operations in 2023, highlighting the ongoing partnership between the NNPC and the privately-owned refinery. The substantial volume of crude supplied underscored the significance of the naira-for-crude policy in supporting domestic refining capacity.
Paragraph 6: Government’s Commitment and Positive Economic Impact
Dr. Zacch Adedeji, Chairman of the Technical Sub-Committee on the naira-for-crude deal, unequivocally reaffirmed the government’s commitment to the policy, dismissing any speculation about its potential termination. He emphasized that the policy has demonstrably yielded positive results for the Nigerian economy and remains a vital instrument for promoting domestic refining, reducing import dependency, conserving foreign exchange, and ultimately stabilizing fuel prices. The government’s conviction in the policy’s efficacy and its commitment to its continued implementation provides a clear signal to stakeholders and investors about the long-term viability of the naira-for-crude framework. The initial success and the ongoing efforts to refine and extend the agreement suggest that the naira-for-crude policy will play a pivotal role in shaping Nigeria’s energy landscape in the years to come.
