Naira-for-Crude Policy Remains in Place, Says Chairman of Technical Sub-Committee

By Tgnews

The Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil and Refined Products in Naira, Zacch Adedeji, has clarified that the naira-based crude oil supply arrangement with local refineries remains in place. This is contrary to reports suggesting that the policy had been discontinued, forcing local refineries to rely solely on international crude purchases.

The policy framework enabling the sale of crude oil in naira for domestic refining remains in force, ensuring supply stability and optimizing local refining capacity.

Local refineries have not been excluded from accessing domestic crude, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) ensuring compliance with the Domestic Crude Oil Obligations provisions of the Petroleum Industry Act.

The framework promotes a competitive and efficient pricing environment, supporting the core objectives of enhancing local refining, reducing foreign exchange exposure, and stabilizing the domestic fuel supply.

The clarification comes after reports emerged suggesting that local refineries were being forced to rely solely on international crude purchases. However, Adedeji emphasized that the policy remains in effect, with no decision made to discontinue it.