The Nigerian government’s naira-for-crude policy, which allows the Dangote refinery to purchase crude oil from the Nigerian National Petroleum Company Limited (NNPC) in naira, may be extended beyond its initial six-month term. Insider sources familiar with the development revealed that discussions for the renewal of the policy are ongoing.
The policy, which commenced on October 1, 2024, aimed to improve fuel supply, reduce petroleum product imports, and lower fuel prices. The NNPC supplied 48 million barrels of crude oil to the Dangote refinery under the deal, with a total of 84 million barrels supplied since the refinery began operations in 2023.
According to a senior government official, the policy has positively impacted fuel prices and other economic indices, including the FX rate. However, the committee responsible for the policy is awaiting the Nigeria Upstream Petroleum Regulatory Commission’s submission before deciding on the policy’s future.
Meanwhile, the Dangote refinery has continued to diversify its crude oil sources. According to a report by S&P Global, the refinery processed approximately 400,000 barrels of crude oil per day in 2025, with 35% sourced from international imports. The refinery has also secured crude oil from Brazil and Equatorial Guinea, reducing its dependence on domestic crude oil supplies.
However, the Human Rights Writers Association (HURIWA) has expressed concerns about the potential termination of the naira-for-crude policy. In a statement, HURIWA urged President Bola Tinubu to continue the policy, warning that termination could lead to increased pump prices and exacerbate poverty among Nigerians.
HURIWA noted that the policy has helped to stabilize fuel prices and reduce the burden on Nigerian households. The group warned that any alteration to the deal could lead to “excruciating hardships” and “massive affliction of poverty” on millions of Nigerians.
The group also expressed concerns about the potential impact on small and medium-scale enterprises, which rely heavily on petrol-powered generators. HURIWA warned that any increase in fuel prices could lead to the closure of these businesses and the loss of jobs.
By Eghosa-Osawe Jr.