The Speaker of the House of Representatives, Abbas Tajudeen, has pledged that the legislature will ensure transparency, accountability, and effective oversight in implementing the Federal Government’s Naira-for-Crude Oil Policy.
Mr Tajudeen, represented by Minority Leader Kingsley Chinda at the inauguration of the Ad-hoc Committee on the implementation and oversight of the policy, said the initiative was a pivotal step toward strengthening accountability and efficiency in one of Nigeria’s most strategic energy reforms.
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He explained that the committee has been tasked with monitoring implementation, promoting inter-agency coordination, and evaluating the policy’s impact.
“Its work is critical to making sure the objectives of the policy are met, and that any gaps in execution are promptly addressed. The House expects nothing less than a thorough, impartial, and well-documented process that contributes to the stability of our economy,” the speaker said.
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Mr Tajudeen stressed that the policy has broad implications for exchange rate stability, revenue generation, and long-term energy security.
He said a comprehensive review would help determine whether the initiative is meeting its objectives and guide the legislature in making adjustments where necessary.
He reaffirmed the commitment of the 10th House to supporting President Bola Tinubu’s Renewed Hope Agenda, especially in tackling economic challenges.
The speaker said, “Our resolve is to ensure the legislature remains a true partner in progress by aligning its priorities with the aspirations of the people and the policy direction of government.
“We are committed to working across party lines and with all stakeholders to promote sustainable growth, enhance citizens’ welfare, and safeguard national resources for present and future generations.”
According to Mr Tajudeen, stakeholder engagement will be central to the committee’s assignment, stressing that collaboration with government agencies, industry operators, civil society groups, and other actors would enrich the process and strengthen public confidence.
Also, the committee’s Chairman, Boniface Emerengwa, said Nigeria must capture greater value from its oil resources.
He explained that the Naira-for-Crude Policy is designed to shift more crude oil transactions into Naira rather than dollars, thereby boosting confidence in the local currency, reducing pressure on foreign reserves, stimulating domestic economic activity, and reinforcing Nigeria’s sovereignty over its resources.
He further noted that the committee’s mandate is to critically examine the feasibility and sustainability of the policy, engage stakeholders across government and industry, and make evidence-based recommendations to guide the House.
“The policy seeks to create a framework where crude oil transactions are increasingly denominated in Naira rather than foreign currencies. If well-structured, it will boost confidence in the Naira, reduce pressure on our reserves, stimulate domestic economic activities, and reinforce Nigeria’s sovereignty over its resources,” he explained.
Background and developments
The Naira-for-Crude Policy was introduced to reduce pressure on foreign exchange demand, encourage local refining, and stabilise the Naira by ensuring that crude oil sold to domestic refineries is paid in local currency.
In April 2025, the Federal Executive Council officially directed the full implementation of the suspended Naira-for-Crude agreement with local refiners, affirming that it was not a short-term measure but a long-term intervention in Nigeria’s energy sector.
A technical subcommittee on Domestic Crude Sales in Naira, chaired by Zacch Adedeji, has since been working with regulators and operators to manage implementation.
Reports indicate that more than 48 million barrels of crude have already been supplied to local refineries and paid for in Naira.
The Dangote Refinery, the country’s largest, has been a major beneficiary, with the Nigerian National Petroleum Company Limited (NNPC) slated to supply it about 385,000 barrels per day of crude under the arrangement. In exchange, the refinery is to supply petrol and diesel of equivalent value in Naira.
The government has also set up a one-stop shop to coordinate approvals among agencies such as the Nigerian Ports Authority and NIMASA, while ensuring that all related fees are paid in Naira.
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Benefits and challenges
The Dangote group recently disclosed that the policy boosts confidence in the local currency, reduces dollar demand, and strengthens Nigeria’s sovereignty over its resources. It said participation in the programme has helped reduce petrol prices for Nigerians.
However, challenges persist. In March, Dangote temporarily suspended fuel sales in Naira, citing a mismatch between the crude volumes delivered and the value of refined products already supplied under the policy.
Nigeria’s refineries are projected to need about 770,500 barrels per day under the Domestic Crude Supply Obligation, roughly 37 per cent of expected national output, but meeting that requirement has proven difficult.
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