The Nigerian government has confirmed that the naira-for-crude agreement with Dangote Refinery and other local refineries, facilitated by the Nigerian National Petroleum Company Limited (NNPCL), is still in effect.

This update was shared by the Technical Sub-Committee on the Crude and Refined Product Sales in Naira Initiative in a statement released on Wednesday, following a meeting with stakeholders on Tuesday.

The committee emphasized that the naira-for-crude arrangement is not a temporary or short-term measure, but rather a crucial policy aimed at promoting sustainable local refining, enhancing energy security, and reducing dependence on foreign currency in the domestic petroleum sector.

The initiative, according to the committee, will continue as long as it serves the public interest and aligns with the country’s economic goals.

In their statement, posted on the Federal Ministry of Finance’s X account, the committee reaffirmed the government’s commitment to fully implementing this strategic initiative as directed by the Federal Executive Council (FEC).

The committee also acknowledged that, like any significant policy shift, the naira-for-crude initiative has faced some implementation challenges, which are being addressed through coordinated efforts by all involved parties.

The update meeting was attended by key figures, including the Chairman of the Implementation Committee and Minister of Finance, Mr. Wale Edun; the Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji; and senior officials from NNPC, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Central Bank of Nigeria (CBN), and the Nigerian Ports Authority (NPA), among others.

It is worth noting that Dangote Refinery had suspended the sale of its petroleum products in naira on March 19 due to issues in the naira-for-crude deal, which resulted in a rise in petrol prices the following week.