Finance Minister and NNPCL Review Naira-for-Crude Policy
The Technical Sub-Committee on the Naira-for-Crude Policy convened on Thursday at the Ministry of Finance Headquarters in Abuja to assess progress and reaffirm commitments to the policy framework. The meeting was attended by key stakeholders, including Finance Minister Wale Edun, the Federal Inland Revenue Service Chairman, Dr. Zacch Adedeji, and representatives from the Nigerian National Petroleum Company Limited (NNPCL), the Central Bank of Nigeria, and the Dangote Petroleum Refinery.
Discussions focused on the allocation of crude oil for domestic refining, with the NNPCL presenting a detailed crude delivery report. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) provided updates on production from Dangote Refinery, NNPC Warri Refinery, and Port Harcourt Refinery, while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) outlined crude oil availability for local refineries.
This meeting comes amid ongoing negotiations between NNPCL and Dangote Petroleum Refinery regarding the renewal of the naira-for-crude agreement, set to expire on March 31, 2025. The NNPCL recently dismissed claims that it had suspended the deal until 2030, clarifying that crude oil worth N486.31 billion was supplied to Dangote Refinery between October and December 2024 under the agreement.
The naira-for-crude policy, launched on October 1, 2024, aims to strengthen local refining capacity, reduce dependence on dollar transactions, and lower fuel prices. Since its inception, Dangote Refinery has received 48 million barrels for refining, with a total of 84 million barrels supplied since it began operations in 2023.
Zacch Adedeji, Chairman of the Technical Sub-Committee, reaffirmed the government’s commitment to the policy, stating that it remains a crucial strategy for economic stability. “There is substantial evidence that this policy is the right approach, and it will continue to benefit the nation’s economy,” he emphasized.
As negotiations continue, stakeholders remain focused on ensuring a steady supply of crude oil to local refineries, reinforcing Nigeria’s goal of achieving energy self-sufficiency and economic growth.
