By Agboola Aluko – GLiDE NEWS | Lagos, April 10, 2025
I n what could mark a turning point for millions of Nigerians grappling with rising fuel costs, the Federal Government has reactivated its groundbreaking Naira-for-Crude policy, a move industry stakeholders say will slash pump prices of Premium Motor Spirit (PMS), commonly known as petrol.
This decision was reached after the Federal Executive Council (FEC) ordered the full implementation of the initiative, initially rolled out in 2024 to enable local refineries to purchase crude oil in naira rather than the US dollar.
The renewed policy comes on the heels of a strategic meeting involving top government officials and industry leaders, including representatives from Dangote Refinery, the Nigerian National Petroleum Company (NNPC) Limited, the Central Bank of Nigeria (CBN), and regulatory bodies.
Major Cost Relief Expected
According to oil marketers, the reinstated naira-based crude sales will help ease the current strain on foreign exchange, leading to more stable and potentially reduced fuel prices across the country.
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), described the decision as a win for the average Nigerian.
“We are confident that this move will lead to a significant drop in pump prices. It shows the government is listening to the voice of stakeholders,” Ukadike told GLiDE NEWS. He hinted that Dangote Refinery is likely to announce a lower loading price for PMS before the end of the week.
Policy to Strengthen Local Economy
The Ministry of Finance reiterated that the naira-for-crude initiative is not a temporary fix but a strategic, long-term policy aimed at ensuring energy security, reducing reliance on imported fuel, and safeguarding the country’s foreign reserves.
A statement shared on the Ministry's official X handle read:
“The initiative is 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 policy originally began in October 2024, with the goal of redirecting crude oil supply to Nigerian refineries and promoting local production. However, the scheme was briefly suspended in March when Dangote Refinery halted naira-based sales due to dollar-denominated procurement challenges.
That pause led to a sharp spike in fuel prices, jumping from ₦860 to around ₦960 per litre in a matter of days. The reinstatement of the policy is now seen as a corrective measure to reverse that trend.
Call for Wider Participation
Industry groups are pushing for broader inclusion of local refineries in the naira-for-crude framework. The Crude Oil Refinery Owners Association of Nigeria (CORAN) has welcomed the revival but expressed concern over the initial implementation, which largely focused on Dangote Refinery.
“We hope the remaining five operational refineries in the country will now be fully included. Local refining is key to achieving price stability and reducing import dependency,” said CORAN’s spokesperson, Eche Idoko.
He described the initiative as one of the most effective tools to stabilize Nigeria’s economy amid global market uncertainties.
PETROAN Backs FG’s Direction
Echoing similar sentiments, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) urged the government to ensure the policy is implemented equitably across all Nigerian refineries.
PETROAN President, Billy Gillis-Harry, said:
“We commend the President and the FEC. This is a critical component of economic growth, and we’re optimistic it will yield significant benefits if executed properly.”
He also emphasized the need for Nigeria to assert greater economic independence, especially in light of international trade and political dynamics.
“Let’s give our local economy the attention it deserves and run it with pride. We don't need to be swayed by external pressures. Efficient internal systems are the pathway to lifting millions out of poverty,” Gillis-Harry said.
What’s Next?
With the Federal Government doubling down on this initiative and major stakeholders expressing optimism, all eyes are now on Dangote Refinery and other local producers to adjust prices accordingly in the coming days.
Nigerians may finally be seeing the light at the end of the tunnel as the government pivots towards policies that prioritize local production, reduce dollar dependency, and promote economic resilience.
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