Hope For Cheaper Petrol As Government Restores Naira-For-Crude Policy.
There is renewed optimism that Nigerians may soon enjoy lower prices for Premium Motor Spirit (PMS), commonly known as petrol, as the Federal Government has officially reinstated the crude and refined product sales in naira initiative.
In an update posted on its official X handle, the Federal Ministry of Finance announced that the Technical Sub-Committee on the initiative held a strategic meeting on Tuesday to assess progress and address implementation issues. The meeting brought together key stakeholders, including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who chairs the Implementation Committee.
Also in attendance were the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, who heads the Technical Sub-Committee; Chief Financial Officer of the Nigerian National Petroleum Company Limited (NNPCL), Dapo Segun; representatives of Dangote Petroleum Refinery and Petrochemicals; senior officials from the Central Bank of Nigeria (CBN), Nigerian Ports Authority (NPA), Afreximbank, and other regulatory bodies.
According to the ministry, stakeholders reaffirmed the government’s unwavering commitment to fully implement this strategic policy, which is not considered a short-term intervention but a long-term directive aimed at boosting local refining, ensuring energy security, and reducing reliance on foreign currency in the petroleum market.
The initiative, introduced in October 2024, allows domestic refineries to purchase crude oil using naira instead of U.S. dollars. This move is designed to support Nigeria’s economic stability by strengthening local production and easing pressure on foreign exchange reserves.
Though the policy faced a temporary setback earlier this year due to challenges with crude supply commitments and contract obligations, government officials have assured the public that the initiative is back on course. The first six-month agreement between NNPCL, local refiners — including the Dangote Refinery — and the government expired in March 2025, leading to fears of petrol price hikes after Dangote ceased selling refined products in naira.
The refinery had earlier disclosed that its naira-based sales had surpassed the value of the crude oil it received under the local currency arrangement, prompting a switch to dollar-based transactions. This shift sparked concern over rising fuel prices and the strain on Nigeria’s forex reserves, as refineries had to source dollars to buy crude.
However, Adedeji clarified that no decision was made at the policy level to abandon the naira-for-crude framework. Instead, the committee is working to resolve implementation issues and ensure that the initiative continues to align with national economic interests.
As the government and industry stakeholders recommit to the policy, hopes are high that Nigerians could benefit from more stable fuel prices and improved access to locally refined petrol. The policy is expected to support not only the Dangote Refinery but also NNPC’s refining efforts, contributing to Nigeria’s broader goal of achieving energy independence.
