The Federal Government has dismissed claims that the naira-based crude oil supply arrangement for local refineries has been halted, forcing them to depend solely on international crude purchases.
In a statement issued by Zacch Adedeji, Chairman of the Technical Sub-Committee on the Federal Executive Council (FEC) Initiative on Domestic Sales of Crude Oil and Refined Products in Naira, the government clarified that the policy remains in effect and is not being considered for termination.
“The framework for selling crude oil in naira for domestic refining is still operational. This initiative was introduced to maintain supply stability and maximize the use of local refining capacity,” the statement read.
Adedeji reaffirmed that domestic refineries continue to have access to local crude, with structured agreements in place to ensure a balance between supply, demand, and market conditions. He also emphasized that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is overseeing compliance with the Domestic Crude Oil Obligations outlined in the Petroleum Industry Act.
The government further noted that the policy is crucial for fostering competitive pricing, enhancing market efficiency, reducing reliance on foreign exchange, and ensuring a steady domestic fuel supply.
Reiterating its commitment to the initiative, the committee assured stakeholders that the policy remains a key strategy for strengthening Nigeria’s refining capacity and energy security.
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