Naira-for-Crude Policy Remains In Place – Chairman, Technical Sub-Committee
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The Federal Government’s naira-based crude oil supply policy remains in force, contrary to recent reports suggesting its discontinuation, the Chairman of the Technical Sub-Committee on Domestic Crude Oil Sales, Zacch Adedeji, has clarified.
In a statement issued on Sunday, Adedeji reaffirmed the Federal Executive Council’s (FEC) commitment to the initiative, emphasizing that local refineries are not being excluded from domestic crude oil supply under the policy.
“The policy framework enabling the sale of crude oil in naira for domestic refining remains in force. The initiative was designed to ensure supply stability and optimize the utilization of local refining capacity,” Adedeji stated.
He further dismissed claims that local refineries are being forced to rely solely on international crude purchases, describing them as inaccurate. According to Adedeji, the engagement process for crude oil supply to domestic refineries remains in place through structured agreements that consider factors such as availability, demand, and market conditions.
“There has been no decision at the policy level to discontinue this approach nor is it being considered. After implementing the policy for some months, evidence abounds that it is the right way to go and it will continue to help the economy,” he added.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is actively ensuring compliance with the Domestic Crude Oil Obligations provisions outlined in the Petroleum Industry Act (PIA), the statement noted.
Adedeji also highlighted that the framework supports competitive pricing and market efficiency, promoting a fair market environment for domestic crude transactions.
“We remain committed to ensuring the efficient execution of this initiative in line with its core objectives – enhancing local refining, reducing foreign exchange exposure, and stabilizing the domestic fuel supply,” he concluded.
The naira-for-crude policy was introduced as part of the government’s broader strategy to reduce dependence on foreign exchange for energy transactions and to bolster local refining capacity amid global economic pressures.
