Abuja, Nigeria — Federal Executive Council don direct full implementation of di previously suspended Naira-for-Crude agreement wit local refiners. Dis announcement come from di Ministry of Finance for dia official X handle on Wednesday.
Di first phase of dis six-month deal wey involve di Federal Government, Nigerian National Petroleum Company Limited (NNPCL), and Dangote Petroleum Refinery end for March 31, 2025, and e never renew. As a result, Dangote Refinery don stop to dey sell refined petroleum products in Naira.
For one new update on Wednesday, di committee talk say dis policy no be temporary matter but long-term plan to reduce Nigeria’s reliance on foreign currency for petroleum transactions. Di announcement follow key meeting wey happen on Tuesday to review progress and address ongoing issues surrounding di agreement.
Di statement wey dem release read, “Di Technical Sub-Committee on di Crude and Refined Product Sales in Naira initiative convene an update meeting on Tuesday to review progress and address ongoing implementation matters.” Dem also talk say, “Di stakeholders reaffirm di government’s commitment to di full implementation of dis strategic initiative.”
Di policy go involve transaction of crude oil and refined petroleum products in Naira, aimed at boosting Nigeria’s economic sovereignty, enhancing local refining capacity, and stabilizing di foreign exchange market for domestic petroleum transactions.
Di Ministry explain say di policy go also support energy security and promote investment for local refining infrastructure. “As wit any major policy shift, implementation challenges fit arise, but we dey address dem as dey come,” dem represent comment. Di initiative go dey effective as long as e align wit public interest and support Nigeria’s economic goals.
Di meeting wey hold on Tuesday involve di chairman of di Implementation Committee, Hon. Minister of Finance and Coordinating Minister of di Economy, Mr. Wale Edun; chairman of di Technical Sub-Committee and Executive Chairman of di Federal Inland Revenue Service, Mr. Zacch Adedeji; and other key stakeholders from NNPCL, Dangote Petroleum Refinery, Nigerian Upstream Petroleum Regulatory Commission, among others. Dem all gather to ensure success of di initiative and maintain commitment to di strategy.
However, di situation for di oil market don begin to change since di Dangote refinery stop refined product sales in Naira. Sources report sey NNPC don delay di delivery of crude oil allocated to Dangote refinery, wey fit impact di crude output from OPEC also. Di delay in supply dey linked to disagreement over payment terms between NNPC and Dangote, leading to speculation of possible impact on fuel prices.
As di naira-for-crude deal near expiration last month, questions don arise on whether di Federal Government go renew di agreement. Dis uncertainty don cause increase in fuel prices after Dangote refinery suspend di sale of naira-based fuel.
Di Nigerian oil market dey go through challenges like pipeline sabotage and instability in Rivers State, wey dey affect production outlook. In contrast to government assurances, Dangote executive express doubt over di renewal of di deal due to operational impacts di naira sales policy don cause.”
Meanwhile, as crude oil prices dey fall globally, market watchers dey speculate sey dis could lead to lower fuel prices at filling stations. However, di budget for 2025 bin dey benchmark crude prices at $75 per barrel, and di declining prices go affect di national budget.
