The Federal Government has commended the renewed momentum of its naira-for-crude oil initiative, describing the policy as a strategic pillar for stabilising the naira and enhancing Nigeria’s energy independence.

During a high-level meeting held in Abuja on Thursday, the Technical Sub-Committee on Crude and Refined Product Sales in Naira provided updates on the policy’s implementation. The initiative, which encourages domestic crude oil and petroleum transactions in naira rather than U.S. dollars, is aimed at reducing forex pressure and promoting local refining.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who chaired the meeting, expressed satisfaction with the current progress. “The synergy among key economic and energy institutions is yielding results. We are optimistic about the impact this will have on the economy,” Edun said.

At the session, the Nigerian National Petroleum Company Limited presented data on crude oil volumes allocated to domestic refineries, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority shared output figures from the Dangote Petroleum Refinery and Petrochemicals.

Also in attendance were key stakeholders including the Executive Chairman of the Federal Inland Revenue Service, Mr. Zacch Adedeji; Special Adviser to the President on Energy, Ms. Olu Verheijen; and senior officials from the Nigerian Ports Authority and the Nigerian Upstream Petroleum Regulatory Commission.

A statement from the Ministry of Finance underscored the administration’s commitment to the policy’s success, noting that it forms a key component of President Bola Tinubu’s broader economic reforms. “This initiative is central to our efforts to strengthen the naira and deepen value creation in the oil and gas sector. We remain fully committed to its effective implementation,” the ministry stated.

The policy faced setbacks in March 2025 when the Dangote refinery temporarily suspended naira-based transactions, citing revenue mismatches due to dollar-linked crude purchases. However, following leadership changes at NNPCL and renewed government engagement, the refinery resumed buying crude in naira, prompting a reduction in petrol prices to N915 per litre.

Following the Federal Executive Council’s directive in July 2024, the NNPCL resumed supplying crude to domestic refineries—including Dangote—in local currency. Analysts believe this approach could ease pressure on Nigeria’s foreign exchange market and contribute to more stable fuel pricing.

Industry experts have stressed the importance of sustained collaboration among stakeholders to ensure the long-term viability of the naira-for-crude initiative.