The Nigerian federal government has officially denied reports claiming the termination of the Naira-for-crude-oil swap arrangement, confirming that the program remains active despite rumors suggesting it would end this month.
This clarification comes in response to media reports alleging that the Nigerian National Petroleum Company Limited (NNPC) had decided to discontinue the agreement with domestic refiners, including the Dangote Refinery.
Zacch Adedeji, who chairs the Technical Sub-Committee on Crude-for-Naira Initiative, addressed these claims directly, stating that no policy-level decision has been made to halt the program. He emphasized that such reports do not accurately represent the ongoing implementation of the initiative.
The Naira-for-crude-oil arrangement was established to strengthen the domestic refining sector and support the national currency by conducting petroleum transactions in naira rather than dollars. The program represents a significant component of the government’s strategy to reduce dependence on imported refined products and stabilize the local currency.
Government officials maintain that the initiative continues to operate as part of the broader Federal Executive Council efforts focusing on domestic sales of crude oil and refined petroleum products in the national currency.
The confirmation of the program’s continuation provides reassurance to stakeholders in Nigeria’s oil and gas sector amid ongoing economic reforms and efforts to enhance energy security through increased domestic refining capacity.
