WATCH THE VIDEO HERE The federal government’s policy allowing crude oil sales in naira for domestic refining remains in place, despite reports suggesting its discontinuation, 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 have been forced to rely solely on international crude purchases. He reaffirmed that the naira-based crude supply arrangement is still operational and remains a key component of the government’s strategy to stabilize supply and optimize 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 read: “Our attention has been drawn to reports doing the rounds and suggesting that the naira-based crude oil supply arrangement with local refineries has been discontinued, forcing the domestic refineries to rely 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 driving the implementation of this laudable initiative, we wish to provide an update on the Federal Executive Council initiative and confirm as follows.” He clarified that local refineries have not been excluded from accessing domestic crude, emphasizing that the supply process remains intact through structured agreements that consider availability, 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, ensuring local refiners receive adequate supply. The policy framework also supports competitive pricing and market efficiency, ensuring that domestic crude transactions occur in a structured and fair environment. Adedeji reiterated the committee’s commitment to improving the policy’s execution, with the broader objectives of enhancing local refining, reducing foreign exchange exposure, and stabilizing the domestic fuel supply. This assurance comes as Nigeria continues efforts to boost its refining capacity and reduce reliance on imported petroleum products.
Adedeji: No Plans To Discontinue Naira-Based Crude Supply To Local Refiners
