As Nigerians anxiously await relief at the fuel pump, oil marketers have announced a significant drop in petrol prices, with further reductions expected in the coming weeks. This comes as the Federal Government’s Naira-for-Crude initiative continues to gather momentum, signaling a much-needed shift in the nation’s energy sector.
Dangote Refinery Set to Cut Petrol Prices
A major boost to this price reduction is expected from Dangote Refinery, a key player in Nigeria's oil industry. According to industry insiders, Dangote is on track to lower its petrol loading costs by the end of the week, which will directly contribute to bringing fuel prices down for consumers.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the upcoming price drop, while commenting on the Federal Executive Council’s (FEC) recent directive on the Naira-for-Crude agreement. Though he couldn’t pinpoint the exact figure, Ukadike reassured the public that this was a step in the right direction.
The Naira-for-Crude Agreement: What’s At Stake
The Federal Executive Council’s commitment to the Naira-for-Crude policy—allowing local refineries to purchase crude oil in Naira—has been a game-changer for the nation. The initiative, which started on October 1, 2024, was designed to ease Nigeria’s reliance on foreign exchange by promoting local refining and stabilizing fuel prices.
The policy’s goal is clear: reduce the country’s dependency on dollars, enhance local refining capacity, and curb the rising cost of imported petroleum products. This move is part of broader efforts to bolster Nigeria’s energy security and strengthen its economic sovereignty.
However, the path hasn’t been without obstacles. After an initial halt by Dangote Refinery in March 2025—citing mismatched sales proceeds and crude oil purchase obligations—fuel prices surged, increasing from N860 to N960 per litre. But with the recent updates, industry players are optimistic that prices will return to more stable levels.
In a fresh statement, the FEC reassured Nigerians that the Naira-for-Crude policy is not a temporary measure. Instead, it’s a long-term strategy aimed at boosting local refining and reducing the country’s reliance on foreign exchange in petroleum transactions.
While Dangote Refinery has been a major beneficiary of this policy, other local refineries have yet to fully tap into the benefits. Industry experts, including Eche Idoko, National Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria (CORAN), have emphasized the need for broader inclusion of local refineries to maximize the policy’s potential.
Idoko pointed out that, during the pilot phase, the initiative was only extended to Dangote Refinery, which did not allow for full industry participation. He urged the government to extend the policy to all local refineries to fully realize the economic benefits and drive down fuel prices across the board.
The Role of the Naira in Stabilizing Fuel Prices
In addition to its economic benefits, the Naira-for-Crude initiative is also seen as a crucial step towards stabilizing the value of the Naira itself. With local refineries now engaging in Naira-denominated transactions, the pressure on the dollar is expected to ease, creating a more favorable environment for both consumers and businesses.
Industry stakeholders have largely welcomed the policy, with many expressing confidence in its long-term impact. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), lauded the government’s efforts and stressed the importance of ensuring all refineries benefit from the scheme.
“By including all local refineries, we can guarantee affordable fuel prices and enhance energy security for Nigerians,” said Gillis-Harry. He also pointed out that the policy would help Nigeria steer clear of international pressures, such as those from foreign leaders, and focus on building a self-sufficient energy sector.
What This Means for Nigerians
As the Naira-for-Crude policy moves forward, the public can expect tangible benefits, including a more stable energy market and lower fuel prices. The commitment to local refining not only strengthens Nigeria’s energy security but also positions the country as a leader in self-sufficiency amidst global economic challenges.
In conclusion, while there are still hurdles to overcome, the government’s ongoing efforts to implement this policy signal a promising shift towards a more sustainable and self-reliant energy future for Nigeria.