Zacch Adedeji, Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil and Refined Products in Naira and Executive Chairman of the Federal Inland Revenue Service (FIRS), addressed rumors on March 10, 2025, clarifying that the Naira-for-crude oil policy with local refineries remains active and has not been discontinued.
Adedeji also dismissed social media reports suggesting that the Nigerian National Petroleum Company (NNPC) Limited would terminate its six-month Naira-based crude oil supply contract with Dangote Refinery by the end of March 2025. He emphasized that the policy, implemented months ago, has proven effective in supporting Nigeria’s economy and will continue to do so.
“Reports claiming the naira-based crude oil supply arrangement with local refineries has been halted are inaccurate and do not reflect the ongoing efforts under the Federal Executive Council Initiative on Domestic Sales of Crude Oil and Refined Products in Naira,” Adedeji stated. He reaffirmed that the framework for selling crude oil in naira to domestic refineries remains intact, ensuring supply stability and maximizing local refining capacity.
Adedeji further clarified that no policy-level decision has been made to discontinue the initiative, nor is such a move under consideration. “Evidence shows this is the right approach, and it will continue to benefit the economy,” he added. He also assured that local refineries, including Dangote Refinery, continue to have access to domestic crude oil supply, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) enforcing compliance under the Petroleum Industry Act’s Domestic Crude Oil Obligations provisions.
The initiative, Adedeji explained, promotes competitive pricing and market efficiency while reducing foreign exchange pressures and stabilizing Nigeria’s fuel supply. “The committee is fully committed to executing this policy efficiently, in line with its goals of boosting local refining and ensuring a stable domestic fuel market,” he said.
In a separate statement, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, addressed the initial six-month contract with Dangote Refinery, set to expire in March 2025.
“The agreement was always structured as a six-month deal, subject to crude availability. Discussions are underway for a new contract,” Soneye noted, debunking claims of a unilateral termination. Since October 2024, NNPC has supplied over 48 million barrels of crude to Dangote Refinery under the Naira-for-crude arrangement, with a total of over 84 million barrels provided since the refinery’s operations began in 2023.
Soneye reiterated NNPC’s commitment to supplying crude oil for local refining based on mutually agreed terms, including an off-take agreement of 25 million liters of petrol daily from Dangote Refinery. The clarifications were issued to correct misconceptions circulating in the public domain.
Despite earlier rumors from an industry source suggesting NNPC might not renew the deal, Adedeji and NNPC’s statements confirm the Naira-for-crude policy remains a cornerstone of Nigeria’s economic strategy.
