Nigeria’s government has further affirmed on Monday that it will not halt its policy of exchanging its crude oil for naira to local refineries.
Dr. Adedeji, Charmain of the Technical Sub-Committee on Naira-for-Crude Policy, made this disclosure following rumours about the program’s future.
“The Naira-based crude sales framework remains intact,” stated Dr. Adedeji. “There are no plans to discontinue this important economic initiative.”
His statement was response to concerns after NNPCL explained that its current arrangement with Dangote Refinery was approaching its scheduled end date. Olufemi Soneye from NNPCL had earlier clarified the situation:
“To clarify, the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025,” Soneye stated. He further added that negotiations for a new contract are already underway.
Since October 2024, NNPCL has furnished Dangote Refinery with over 48 million barrels of oil under this agreement. In total, the refinery has attracted more than 84 million barrels since it started operating in 2023.
“NNPCL remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions,” Soneye said.
The naira-for-crude policy avails Nigerian refineries the opportunity to buy oil with naira instead of dollars. This helps protect Nigeria’s economy from currency problems and supports local oil processing.
Dr. Adedeji explained that the policy goes a long way in ensuring a steady oil supply for Nigerian refineries and supports the broader economy. All local refineries can get oil under this program if they follow the rules set by Nigeria’s oil regulators.
“This framework promotes competitive pricing and efficiency in the domestic crude market,” according to Dr. Adedeji.
