The Federal Government has emphasized that its naira-for-crude initiative with local refineries is not a temporary solution but a strategic policy aimed at promoting sustainable domestic refining.

The Nigerian government has confirmed that the naira-for-crude initiative remains in effect, overriding the decision made by the NNPC under former CEO Mele Kyari to terminate it.

During a meeting with representatives from Dangote Refinery on Tuesday, Finance Minister Wale Edun emphasized that the initiative is still operational.

Last month, NNPCL the termination of the naira-for-crude oil swap deal with domestic refiners, including Dangote Refinery and other private operators.

The naira-for-crude arrangement, launched on October 1, 2024, enabled local refiners to buy crude oil in naira rather than dollars.

This initiative aimed to boost domestic refining capacity, reduce reliance on imported petroleum products, and help stabilize the local currency by easing pressure on foreign exchange reserves.

Sources familiar with the matter reveal that the NNPC has informed local refiners that it has already allocated its crude oil production to forward contracts, leaving no supply available for domestic refineries.

This comes despite reports of increased crude output in Nigeria since the initiation of the naira-for-crude deal.