The Federal Government on Tuesday said that it has not suspended the naira-for-crude oil swap deal with domestic refiners, including Dangote Refinery and other private operators, insisting that the policy remains in place.
Chairman of the Technical Sub-Committee on domestic sale of crude oil and refined products in naira, Dr. Zacch Adedeji stated this in an electronically signed statement while reacting to reports in some sections of the media that the policy may have been jettisoned by the government.
NewsQuest obtained the statement on the Facebook page of the Special Adviser on Media and Strategy to the President, Bayo Onanuga, in which Dr. Adedeji explained that such reports do not reflect the realities of the ongoing work under the Federal Executive Council Initiative.
“Our attention has been drawn to reports doing the rounds and suggesting that the naira-based crude oil supply arrangement with local refineries has been discontinued, forcing the domestic refineries to rely solely on international crude purchases,” the statement noted.
The naira-for-crude arrangement, introduced on October 1, 2024, allowed local refiners to purchase crude oil in naira instead of dollars, as an initiative designed to support domestic refining capacity, reduce reliance on imported petroleum products, and stabilize the local currency by easing pressure on foreign exchange reserves.
According to Dr. Adedeji, “As the committee driving the implementation of this laudable initiative, we wish to provide an update on the Federal Executive Council initiative and confirm as follows:
“That 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 optimize 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 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 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.”
The sub-committee chairman stressed that “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.”
