The federal government, on Monday, said the naira-for-crude policy remains in place, dismissing reports “suggesting that the policy has been discontinued.”
In a statement on Monday, Zacch Adedeji, chairman of the Federal Inland Revenue Service and Technical Sub-Committee, said reports that the naira-based crude oil supply arrangement has been discontinued “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.”
“The policy framework enabling the sale of crude oil in naira for domestic refining remains in force,” Mr Adedeji said. “The initiative was designed to ensure supply stability and optimise the utilisation of local refining capacity.”
He added, “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.”
According to Mr Adedeji, “Local refineries have not been excluded from domestic crude supply. The engagement process for crude oil supply to domestic refineries therefore remains in place by structured agreements, balancing factors such as availability, demand, and market conditions. There is no exclusion of local refineries from access to domestic crude. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is actively ensuring compliance with the Domestic Crude Oil Obligations provisions of the Petroleum Industry Act.”
The federal government “remains committed to ensuring the efficient execution of this initiative in line with its core objectives—enhancing local refining, reducing foreign exchange exposure, and stabilising the domestic fuel supply.”
This statement comes as the federal government’s response to reports suggesting that the naira-based crude oil supply arrangement with local refineries has been discontinued, forcing domestic refineries to rely solely on international crude purchases.
