The Nigerian National Petroleum Company Limited (NNPCL) has refuted claims alleging the termination of the Naira-for-Crude agreement with domestic refineries, notably the Dangote Refinery. This program, launched in October 2024, allowed local refineries to purchase crude oil using the Nigerian naira instead of foreign currencies, aiming to stabilise supply and optimise local refining capacity.
The initial phase of this agreement was structured as a six-month pilot program, set to conclude at the end of March 2025. During this period, NNPCL successfully supplied the Dangote Refinery with 84 million barrels of crude oil.
Addressing concerns about the program’s future, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that the conclusion of the pilot phase does not signify the end of the naira-for-crude initiative. He emphasised that discussions are currently underway to establish a new contract, ensuring the continuation of this arrangement.
Echoing this sentiment, Zacch Adedeji, Chairman of the Technical Sub-Committee on the Crude-for-Naira initiative, reaffirmed that the policy framework enabling the sale of crude oil in naira for domestic refining remains in place. He stated that there has been no policy-level decision to discontinue this approach, highlighting its benefits in promoting competitive pricing and market efficiency.
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The naira-for-crude initiative plays a pivotal role in Nigeria’s energy sector by reducing the need for foreign exchange in crude oil transactions, thereby alleviating pressure on the naira. While the initial six-month phase of the agreement has concluded, both NNPCL and government officials have clarified that the program is ongoing, with negotiations in progress to establish a new contract. This underscores a commitment to supporting local refining capabilities and maintaining economic stability in Nigeria’s oil and gas sector.
For local refineries, this agreement simplifies procurement processes and reduces exposure to foreign currency fluctuations. The continued implementation of this policy would help stabilize fuel prices and ensure a consistent supply of petroleum products.
