The Chairman of the Technical Sub-Committee naira crude contract, Mr. Zacch Adedeji, says they are aware of reports circulating that suggest the naira-based crude oil supply arrangement with local refineries has been discontinued.
According to him, these reports imply that domestic refineries are now forced to rely solely on international crude oil purchases.
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The chairman pointed out that, these claims do not accurately reflect the ongoing efforts under the Federal Executive Council Initiative on Domestic Sales of Crude Oil and Refined Products in Naira.
“As the committee responsible for implementing this important initiative, we would like to provide an update on the Federal Executive Council initiative and confirm as follows”
Adedeji noted that, the policy framework enabling the sale of crude oil in naira for domestic refining remains in force.
He said, the initiative was designed to ensure supply stability and optimize the utilisation of local refining capacity.
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“There has been no decision at the policy level to discontinue this approach nor is it being considered”
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“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”
The chairman hinted that, 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”
Adedeji posited that, the framework for domestic crude transactions is designed to promote a competitive and efficient pricing environment.
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“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 stabilising the domestic fuel supply”