Amid speculation that the Federal Government has abandoned the naira-based crude oil supply arrangement for local refineries, the Chairman of the Technical Sub-Committee on the initiative, Zacch Adedeji, has reaffirmed that the policy remains intact.
In a statement on Monday, Adedeji dismissed reports suggesting that domestic refineries have been forced to rely solely on international crude purchases. He emphasized that the Federal Executive Council Initiative on Domestic Sales of Crude Oil and Refined Products in Naira is still being implemented and remains a crucial part of Nigeria’s energy strategy.
He outlined key aspects of the policy, including:
- Naira-Based Domestic Sales Framework Remains in Place: The initiative, designed to enhance local refining capacity and ensure supply stability, has not been discontinued, nor is there any plan to do so. Adedeji noted that evidence from its implementation so far indicates it is beneficial to the economy.
- Local Refineries Not Excluded: The process for supplying crude oil to domestic refineries is ongoing, with structured agreements ensuring availability based on demand and market conditions. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is actively enforcing compliance with the Domestic Crude Oil Obligations provisions of the Petroleum Industry Act (PIA).
- Competitive Pricing and Market Efficiency: The framework is structured to support fair pricing and efficient market operations for domestic crude transactions.
- Continued Implementation Efforts: The Technical Sub-Committee remains committed to strengthening the execution of the policy to enhance local refining, reduce foreign exchange exposure, and stabilize domestic fuel supply.
Adedeji reassured stakeholders that the Federal Government is focused on optimizing Nigeria’s refining capacity and ensuring that the naira-for-crude policy continues to support economic growth.
