The Federal Government has revived its naira-for-crude initiative, a key policy that allows local refineries to buy crude oil in Nigerian currency rather than U.S. dollars. This move, according to industry leaders, could soon lead to a major drop in petrol prices across the country.
Oil marketers say the revival of this policy, especially with the participation of Dangote Refinery, will improve supply and bring down the pump price of Premium Motor Spirit (PMS), popularly known as petrol.
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said on Wednesday that the renewed policy directive is a welcome development.
Ukadike said, “We have always mentioned that the deal was definitely going to be implemented. It shows that Mr. President has listening ears. This kind of output from the government means that stakeholders’ inputs matter. With this decision, I believe the price will come down soon.”
Ukadike further explained that Dangote Refinery is expected to reduce its petrol loading prices before the end of the week. “They can’t complain of having old stock. That is not the best practice internationally,” he added.
What the Policy Means
The naira-for-crude policy was introduced in July 2024 to reduce the burden on Nigeria’s dollar reserves and ensure stable fuel prices. Under the plan, the Nigerian National Petroleum Company (NNPC) was directed to sell crude oil to local refineries in naira for six months.
The program officially began on October 1, 2024, and was expected to save Nigeria millions of dollars used to import refined petroleum products. However, it faced a setback in March 2025 when Dangote Refinery temporarily stopped accepting crude in naira. This led to an increase in fuel prices, with the pump price of petrol jumping from around ₦860 to ₦960 per litre.
Now, the Federal Executive Council has ordered a full return to the policy and promised that it will not be temporary.
The Ministry of Finance said in a statement, “The Crude and Refined Product Sales in Naira initiative is not a time-bound intervention but a key policy directive. It is designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
High-Level Support and Implementation
A review meeting held on Tuesday, led by the Minister of Finance Wale Edun, involved major stakeholders including the Dangote Refinery, NNPC, Federal Inland Revenue Service, Nigerian Ports Authority, Central Bank of Nigeria, and others. The Technical Sub-Committee overseeing the initiative reaffirmed the government’s commitment to fully implement the policy.
The ministry also admitted that while challenges may arise, they are being addressed through joint efforts. “The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” it stated.
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Other Refiners Want In
The Crude Oil Refinery Owners Association of Nigeria (CORAN) expressed happiness over the return of the policy but called for more inclusion.
Eche Idoko, National Publicity Secretary of CORAN, said, “We welcome the continuation of the naira-for-crude policy. It is one of the most potent policies of this administration. But we want all local refineries included, not just Dangote.”
He added that during the pilot phase, many of the promised crude allocations were not delivered. “We hope that in this new phase, all five active refineries in Nigeria will benefit fully from the policy.”
PETROAN Supports Expansion
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) also backed the plan and asked the government to ensure that all local refineries are included.
Billy Gillis-Harry, PETROAN National President, said, “We congratulate the President and the FEC for this policy. It is a critical component of Nigeria’s economic recovery. If implemented correctly, we can build a stronger economy and reduce poverty.”
He continued, “The policy is not just for Dangote. It is for all refineries – from NNPC refineries to Azikel, Edo Refinery, Niger Delta Refinery, Walter Smith in Owerri, and others coming up like BUA.”
Gillis-Harry emphasized that crude oil sold in naira to these refineries will mean cheaper fuel for Nigerians. “The more refineries that are involved, the better the price for consumers and the more secure our energy sector becomes.”
Industry stakeholders agree that the resumption and expansion of the naira-for-crude policy could mark a turning point for Nigeria’s fuel market. With more local refining and less reliance on imported products, experts predict increased fuel availability and a gradual drop in pump prices.
Ukadike of IPMAN said, “We are optimistic. The policy shows that the government is listening, and we hope this will finally bring relief to the average Nigerian.”