FG Dismisses Speculations of Policy Abandonment
The Federal Government has debunked claims that it has scrapped the naira-based crude oil supply arrangement for local refineries, insisting that the policy remains a key part of its energy strategy.
In a statement on Monday, the Chairman of the Technical Sub-Committee on the initiative, Zacch Adedeji dismissed reports suggesting that domestic refineries are now compelled to rely solely on international crude purchases.
He clarified that the Federal Executive Council Initiative on Domestic Sales of Crude Oil and Refined Products in Naira is still being implemented and remains a vital component of Nigeria’s energy strategy.
Key Policy Aspects
Naira-Based Domestic Sales Framework Still in Place:
Adedeji emphasised that the initiative, which aims to enhance local refining capacity and ensure supply stability, has neither been discontinued nor slated for discontinuation. He asserted that its implementation has proven beneficial to the economy.
Local Refineries Not Excluded:
The process of supplying crude oil to domestic refineries remains ongoing, with structured agreements ensuring availability based on demand and market conditions. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) continues to enforce compliance with the Domestic Crude Oil Obligations provisions of the Petroleum Industry Act (PIA).
Competitive Pricing and Market Efficiency:
The framework is designed to support fair pricing mechanisms and efficient market operations for domestic crude transactions, ensuring sustainability and transparency.
Continued Implementation Efforts:
The Technical Sub-Committee remains committed to reinforcing the execution of the policy to boost local refining capacity, reduce foreign exchange dependence, and stabilize domestic fuel supply.
Adedeji reassured stakeholders that the Federal Government is determined to optimize Nigeria’s refining capacity while ensuring that the naira-for-crude policy remains a driving force for economic growth.
