The Federal Government’s policy allowing crude oil sales in naira for domestic refining remains firmly in place, despite reports suggesting otherwise, according to Zacch Adedeji, Chairman of the Technical Sub-Committee on the Federal Executive Council Initiative on Domestic Sales of Crude Oil and Refined Products.
In a statement issued on Monday, Adedeji dismissed claims that domestic refineries are now forced to rely solely on international crude purchases, reaffirming that the naira-based crude supply arrangement remains a cornerstone of the government’s strategy to stabilize supply and enhance local refining capacity.
“There has been no decision at the policy level to discontinue this approach, nor is it being considered,” Adedeji stated. “After months of implementation, evidence shows that this policy is the right way forward for the economy.”
The statement further clarified:
“Our attention has been drawn to reports suggesting that the naira-based crude oil supply arrangement with local refineries has been discontinued, forcing domestic refineries to depend solely on international crude purchases.
“These reports do not reflect the realities of the ongoing work under the Federal Executive Council Initiative on Domestic Sales of Crude Oil and Refined Products in Naira.
“As the committee responsible for implementing this initiative, we wish to provide an update and confirm as follows.”
Regulatory Oversight and Compliance
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) continues to enforce compliance with the Domestic Crude Oil Obligations provisions of the Petroleum Industry Act, ensuring that local refiners receive an adequate crude supply.
Competitive Pricing and Market Efficiency
The policy framework is designed to promote competitive pricing and market efficiency, ensuring that domestic crude transactions occur in a structured and transparent environment.
Strengthening Implementation
Adedeji reiterated the committee’s commitment to improving the execution of the policy, with broader objectives of enhancing local refining capacity, reducing foreign exchange exposure, and stabilising the domestic fuel supply.
This reassurance comes as Nigeria continues its efforts to boost refining capacity and reduce dependence on imported petroleum products.
