FG Lauds Naira-for-Crude Deal Milestones
The Federal Authorities’s drive to spice up the naira via native gross sales of crude oil and refined petroleum merchandise has recorded vital progress, in response to the Technical Sub-Committee overseeing the coverage’s implementation.
This was revealed throughout a high-level follow-up assembly of the Technical Sub-Committee on the Crude and Refined Product Gross sales in Naira initiative, held on Thursday in Abuja. The session was presided over by the Minister of Finance and Coordinating Minister of the Financial system, Mr Wale Edun.
Our correspondent noticed that the Nigerian Nationwide Petroleum Firm Restricted (NNPCL) offered a crude supply report detailing the amount of crude oil allotted for home refining below the coverage.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) supplied a home manufacturing report overlaying the Dangote Petroleum Refinery and Petrochemicals.
The committee, attended by the Govt Chairman of the Federal Inland Income Service, Mr. Zacch Adedeji, famous marked milestones within the rollout of the initiative because the final overview. The replace was shared in a publish on the official X deal with of the Federal Ministry of Finance.
The assembly introduced collectively key stakeholders, together with the Particular Adviser to the President on Vitality, Ms Olu Verheijen; senior officers of the Nigerian Nationwide Petroleum Firm Restricted; native refining operators; and high representatives of regulatory companies such because the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Upstream Petroleum Regulatory Fee, and the Nigerian Ports Authority.
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Members reaffirmed their collective dedication to driving the seamless implementation of the initiative, which kinds a core a part of President Bola Tinubu’s financial technique to stabilise the native foreign money, deepen vitality safety, and drive in-country worth addition within the oil and gasoline sector.
Talking on the assembly, Edun applauded the spirit of inter-agency cooperation and pledged sustained authorities backing to make sure full execution of the initiative.
“Stakeholders reaffirmed their shared dedication to the efficient and seamless execution of the coverage, which stays a important element of President Bola Tinubu’s broader technique to strengthen the naira, improve vitality safety, and promote native worth addition throughout the sector.
“The constructive suggestions we’re seeing is a direct results of the synergy amongst our key financial and vitality establishments. We’re optimistic about what lies forward,” the publish learn.
Recall that there was an abrupt cease to the naira for crude settlement in March 2025. The Dangote refinery introduced that it had quickly halted the sale of petroleum merchandise in naira because the naira-for-crude talks between it and NNPCL appeared to have failed.
The 650,000 barrels per day capability refinery lamented that there was a mismatch between its gross sales proceeds and its crude oil buy obligations, which it mentioned are presently denominated in US {dollars}.
Three weeks after the suspension, the settlement was revived below the brand new NNPCL management after it agreed to renew crude gross sales in naira—a transfer that reportedly triggered a drop within the pump worth of Premium Motor Spirit (petrol) to N915 per litre.
As a part of strikes to cut back the pressure on the US greenback and assure worth stability of petroleum merchandise, the Federal Govt Council in July 2024 directed the NNPCL to promote crude oil to Dangote Refinery and different native refineries in naira and never in the US’ dollar.
The resumption of naira-denominated crude gross sales, consultants imagine, would scale back the pressure on the US greenback and assure the value stability of petroleum merchandise.
