The Federal Government has refuted reports suggesting that the naira-based crude oil supply arrangement for local refineries has been discontinued, forcing them to rely solely on international crude purchases.
In a statement signed 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 maintained that the policy remains in place and is not under review for discontinuation.
“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 optimize the utilization of local refining capacity,” the statement read.
Adedeji clarified that local refineries have not been excluded from domestic crude supply, emphasizing that structured agreements continue to guide engagements, balancing factors such as availability, demand, and market conditions.
He added that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is actively ensuring compliance with the Domestic Crude Oil Obligations provisions of the Petroleum Industry Act.
Furthermore, the statement highlighted that the initiative supports competitive pricing and market efficiency while reducing foreign exchange exposure and stabilizing the domestic fuel supply.
The committee reaffirmed its commitment to strengthening the implementation of the initiative, assuring stakeholders that the policy remains a critical part of the government’s efforts to enhance local refining capacity.
