The Federal Government has announced that the agreement facilitating the exchange of naira for crude oil with the Dangote Refinery and other domestic refining entities will persist indefinitely.
This information was made public through a statement disseminated on Wednesday by the Technical Sub-Committee on the Crude and Refined Product Sales in Naira Initiative, subsequent to a convening with principal stakeholders on Tuesday.
The committee elucidated that the arrangement is not a provisional measure but rather a strategic policy directive designed to foster sustainable domestic refining, bolster energy security, and mitigate the nation’s reliance on foreign currency within the local petroleum industry.
”Thus, the Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time.
”However, such issues are being actively addressed through coordinated efforts among all parties,” the statement read.
This announcement arrives weeks after the Dangote Refinery halted naira-based transactions for petroleum products on March 19, attributing the cessation to a malfunction in the naira-for-crude agreement.
This occurrence precipitated an increase in petrol prices nationwide.
As per the Ministry of Finance, stakeholders present at the Tuesday assembly reiterated their dedication to the comprehensive execution of the initiative, in accordance with the mandate of the Federal Executive Council (FEC).
The committee also recognized the presence of implementation difficulties but assured that these challenges are being systematically addressed through collaborative efforts among all stakeholders involved.
In attendance at the meeting were the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who presides as Chairman of the Implementation Committee; the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, who leads the Technical Sub-Committee; the Chief Financial Officer of NNPC Limited, Mr. Dapo Segun; representatives from Dangote Petroleum Refinery and Petrochemicals; as well as other significant stakeholders.
Additionally, senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), Nigerian Ports Authority (NPA), Afreximbank, and the Committee Secretary, Hauwa Ibrahim, were also present.
