Naira-For-Crude Policy Remains In Place – Adedeji

The Chairman of Technical Sub-Committee on Domestic Sales of Crude Oil and Refined Products in naira, Zacch Adedeji, has refuted claims that the naira-for-crude policy has been discontinued.

Naija News reports that Adedeji, who also is the Chairman of Federal Inland Revenue Services (FIRS), said the policy remains in force.

In a statement on Tuesday, the Sub-Committee Chairman dismissed that domestic refineries have been forced to rely solely on international crude purchases.

“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,” he said.

Adedeji explained that there was no exclusion of local refineries’ access to domestic crude. He explained that the local refineries’ access to crude was structured.

“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,” he stated.

While expressing the committee’s commitment to ensuring efficiency of the initiative, he added that the initiative was designed to promote competitiveness.

“The framework for domestic crude transactions is designed to promote a competitive and efficient pricing environment.

“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,” he added.