By David Torough, Abuja

The Federal Executive Council has officially directed the full implementation of the suspended Naira-for-Crude agreement with local refiners.

The Ministry of Finance, Wale Edun disclosed this on its official X handle titled “Update on the Crude and Refined Product Sales in Naira Initiative,” yesterday.

Recall that the first phase of the six-month deal involving the Federal Government, Nigerian National Petroleum Company Limited and Dangote Petroleum Refinery ended March 31.

It has not been renewed and the Dangote refinery has since stopped selling refined petroleum products in naira due to the non-renewal of the naira-for-crude deal.

In a new update yesterday, the committee said the policy is not temporary but a long-term plan to cut Nigeria’s dependence on foreign exchange for petroleum.

This came after a key meeting on Tuesday to review progress and tackle ongoing issues.

It added that the initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining and bolster energy security.

 “The Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative convened an update meeting on Tuesday to review progress and address ongoing implementation matters.

“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council.

“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,” the statement read.

The policy, which mandates the transaction of crude oil and refined petroleum products in Naira, is aimed at strengthening the country’s economic sovereignty, enhancing local refining capacity, and stabilising the foreign exchange market by reducing the demand for dollars in domestic petroleum transactions.

The ministry explained that this policy is structured to foster energy security and encourage investment in domestic refining infrastructure.

While acknowledging that the transition involves complexities, the government admitted that existing challenges are being systematically addressed.

“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 initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” it noted.

The statement added that the meeting was attended by the Chairman of the Implementation Committee, Hon. Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji; the Chief Financial Officer of NNPC Limited, Dapo Segun; the Coordinator of NNPC Refineries; Management of NNPC Trading.

Also present were representatives from Dangote Petroleum Refinery and Petrochemicals, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Ports Authority, Afreximbank, and the Secretary of the Committee, Hauwa Ibrahim.