Naira-for-crude policy still in place—technical sub-committee chairman

The Federal Executive Council’s (FEC) initiative on domestic crude oil sales in naira remains firmly in place, contrary to reports suggesting its discontinuation, the Chairman of the Technical Sub-Committee, Zacch Adedeji, has confirmed.

In a statement addressing the circulating reports, Adedeji dismissed claims that local refineries have been forced to rely solely on international crude purchases, stating that the naira-based crude oil supply arrangement remains operational.

He emphasized that the policy was designed to ensure a stable supply of crude to local refineries, optimize domestic refining capacity, and reduce reliance on foreign exchange for crude oil transactions. He further clarified that there has been no decision at the policy level to discontinue the initiative, nor is such a move being considered.

“The policy framework enabling the sale of crude oil in naira for domestic refining remains in force. Evidence over the past few months has shown that it is the right way to go, and it will continue to support the economy,” Adedeji stated.

He also reaffirmed that local refineries are not being excluded from accessing domestic crude, adding that structured agreements remain in place to balance availability, demand, and market conditions. He noted that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is actively monitoring compliance with the Domestic Crude Oil Obligations under the Petroleum Industry Act.

Additionally, Adedeji assured that the initiative supports competitive pricing and market efficiency, helping to stabilize the domestic fuel supply while minimizing exposure to foreign exchange volatility.

“We remain committed to ensuring the efficient execution of this initiative, with the core objectives of enhancing local refining, reducing foreign exchange exposure, and stabilizing the domestic fuel supply,” he added.

His clarification comes amid growing discussions on the sustainability of Nigeria’s crude oil supply framework, reinforcing the government’s stance on prioritizing domestic refining.