Nigerians may soon experience a significant drop in petrol prices following the Federal Executive Council’s (FEC) reinstatement of the naira-for-crude policy and the expected reduction in loading costs by Dangote Refinery later this week.
Oil marketers revealed that the continuation of crude and refined product transactions in naira would ease pressure on the U.S. dollar and stabilize pump prices. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed this optimism, though he noted the final pricing depends on the government's sale rate of its products.
The Crude Oil Refinery Owners Association of Nigeria (CORAN) also welcomed the move, stressing the importance of involving all local refiners to maximize the policy’s benefits.
The FEC had earlier suspended the initiative, which started on October 1, 2024, to allow local refineries, including Dangote, to purchase crude oil in naira instead of U.S. dollars. The policy, designed to reduce foreign exchange demand and strengthen local refining, was halted in March 2025 when Dangote Refinery paused naira transactions, citing a mismatch between revenue and crude purchase obligations.
That pause triggered an increase in depot loading costs, pushing pump prices from ₦860 to around ₦960 per litre. However, the FEC has now clarified that the initiative is a long-term policy, not a temporary intervention, aimed at enhancing energy security, promoting local refining, and reducing reliance on FX for petroleum products.
A recent update by the Federal Ministry of Finance—shared on its official X handle—confirmed the resumption of the policy after a high-level meeting between Minister Wale Edun, the NNPC, Dangote Refinery, and other key stakeholders.
Stakeholders present included representatives from NNPC Trading, CBN, FIRS, Nigerian Ports Authority, Midstream and Downstream Petroleum Regulatory Authority, Upstream Petroleum Regulatory Commission, Afreximbank, and the committee’s secretary, Hauwa Ibrahim.
Ukadike stated that Dangote Refinery is expected to cut its loading price soon, noting that with the recent fall in crude prices, claims of old stock no longer hold. He also emphasized that marketers’ complaints about heavy losses are finally gaining attention.
On its part, CORAN, through spokesperson Eche Idoko, called for full inclusion of all local refineries, not just Dangote, in the naira-for-crude arrangement. Idoko described the initiative as one of the federal government’s most potent strategies to stabilize the economy amid global volatility. However, he noted that the pilot phase lacked full execution and broader refinery participation.
He said, “We expect all five functional local refineries—NNPC, Azikel (Bayelsa), Edo Refinery (Benin), Niger Delta Refinery (Ahola), and Walter Smith (Owerri)—to benefit from this initiative, including upcoming ones like BUA.”
Echoing this, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), expressed optimism and congratulated the federal government for reviving the policy. He stressed the need for effective implementation, emphasizing that crude should be sold in naira to all Nigerian refineries to ensure affordable fuel and energy security.
Gillis-Harry remarked, “This policy can help us run our economy independently and reduce dependence on global powers. Nigerians should be patient, but urgent action is needed to address hunger and hardship.”
He added that while prices might fluctuate initially, consistency in implementation will eventually stabilize the market.
IPMAN Vice President, Hammed Fashola, also praised the move, reiterating that the reinstatement of the naira-for-crude policy would reduce fuel prices. He blamed the recent price surge on the policy’s earlier suspension and said Nigerians should now expect a reverse in fuel costs.
In summary, the renewed commitment to the naira-for-crude initiative is expected to reduce fuel prices, stabilize the naira, boost local refining, and relieve Nigerians grappling with high energy costs. Stakeholders, however, stress that its success hinges on inclusive implementation across all local refineries.
