The Federal Government has denied media speculation suggesting that the Nigerian National Petroleum Company Limited is planning to discontinue the naira-based crude oil supply arrangement.
Chairman, Technical Sub-Committee, Zacch Adedeji, who made the clarification in a statement he personally signed on Tuesday, insisted that the policy remains in place.
Responding to the report, the Committee Chairman denied any attempt to discontinue the initiative, so as to force local refineries to rely solely on international crude purchase.
Confirming the continued implementation of the policy, he explained that 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,” he insisted, stressing that, “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.”
According to him, no local refinery has been excluded from the programme, adding that the Nigerian Upstream Petroleum Regulatory Commission is actively ensuring with the policy obligations provisions as required by the Petroleum Industry Act.
He noted that the policy supports competitive pricing and market efficiency, stressing that, “The framework for domestic crude transactions is designed to promote a competitive and efficient pricing environment.”
Adedeji said the committee would continue to work on strengthening implementation of the policy.
“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 stated.
The NNPCL had on Monday issued a statement dismissing reports on social media allegedly claiming unilateral termination of the crude oil sales agreement in Naira between NNPCL and Dangote Refinery.
It stated that the contract for the sale of crude oil in Naira between the two firms was structured as a six-month agreement, subject to availability, and expires at the end of March 2025.
According to the statement signed by NNPCL spokesperson, Femi Soneye, discussions are currently ongoing towards emplacing a new contract.
Soneye noted that under the existing contract, NNPCL had supply Dangote Refinery with over 48 million barrel of crude oil since October 2024 while over 84 million barrel of crude oil has been made available to the refinery since 2023 when it commenced operation.
