It has been clarified that the naira for crude deal between the Nigerian National Petroleum Company Limited (NNPCL), Dangote Refinery and other local refineries remains intact.
Chairman, Technical Sub-Committee, Naira For Crude Policy, Dr Zacch Adedeji, made the clarification against the backdrop of widespread report that the initiative has been terminated.
Adedeji stated in a release that the report was not a reflection of the realities of the ongoing work under the Federal Executive Council Initiative on Domestic Sales of Crude Oil and Refined Products in Naira.
“Our attention has been drawn to reports suggesting that the naira-based crude oil supply arrangement with local refineries has been discontinued, forcing them to rely solely on international crude purchases.
“As the committee driving the implementation of this initiative, we wish to provide an update on the Federal Executive Council initiative and confirm as follows”…
The Naira-Based Domestic Sales Framework Remains in Place
“The policy framework enabling the sale of crude oil in naira for domestic refining remains in force. The initiative was designed to ensure supply stability and optimise the utilisation of local refining capacity.
“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.
Local Refineries Not 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.
Initiative Supports Competitive Pricing and Market Efficiency
“The framework for domestic crude transactions is designed to promote a competitive and efficient pricing environment.
The Committee Continues Its Work On Strengthening Implementation
“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,” Adedeji assured.
