Tinubu’s Govt Makes Clarification On Naira-For-Crude Policy

• The Chairman of the Technical Sub-Committee, Zacch Adedeji, has reacted to the Naira-for-crude policy has been stopped
• Adededeji said the policy framework enabling the sale of crude oil in naira for domestic refining remains in force
• According to Adedeji, no decision has been made or considered to discontinue this approach or policy

Legit.ng journalist Adekunle Dada has over 7 years of experience covering metro, government policy, and international events

FCT, Abuja – The Chairman of the Technical Sub-Committee, Zacch Adedeji, said the naira-based crude oil supply arrangement with local refineries has not been discontinued.

Adedeji dismissed reports that the policy has been discontinued, forcing the domestic refineries to rely solely on international crude purchases.

He said the reports do not reflect the realities of the ongoing work under the Federal Executive Council Initiative on Domestic Sales of Crude Oil and Refined Products in Naira.

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He made this known in a statement issued on Monday, March 10, 2025, and made available to Legit.ng.

According to Adedeji, the committee is committed to driving the implementation of the laudable initiative

He provided an update on the Federal Executive Council (FEC) initiative and confirmed 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 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.

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• 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

Adedeji said the committee remain committed to ensuring the efficient execution of the initiative in line with its core objectives - enhancing local refining, reducing foreign exchange exposure, and stabilising the domestic fuel supply.

Legit.ng also reported that Nigeria's crude oil production rose 70,000 barrels per day above its assigned OPEC quota in February 2025.

The development was due to increased domestic demand and use by the mega Dangote Refinery.

Nigeria exceeded its OPEC quota during the period as crude oil prices crashed due to the rise in production.

Analyst predicts NNPC, Dangote crashing petrol price

Meanwhile, Legit.ng reported that crude oil prices are falling, but the value of the naira against the dollar remains stable on the global exchange market.

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Group applauds Tinubu, NUPRC for fuel price reduction, calls for more local refineries

This comes amid rumours that OPEC+ will proceed with its planned oil production hike in April.

According to analysts, the price war between Dangote Refinery and NNPC Limited could lead to a reduction in prices.

Source: Legit.ng