The federal government says the naira-for-crude oil deal will continue after the first phase ended on March 31.
The Ministry of Finance announced on Monday, after a meeting
between the technical sub-committee on the crude and refined product sales in
naira initiative, Wale Edun, minister of finance, and Zacch Adedeji, the
chairman of the committee and the executive chairman of the Federal Inland
Revenue Service (FIRS).
Also at the meeting are representatives of Dangote Petroleum
Refinery and Dapo Segun, the chief financial officer of Nigerian National
Petroleum Company (NNPC) Limited, the coordinator of NNPC refineries;
management of NNPC Trading; and senior officials from the Nigerian Upstream
Petroleum Regulatory Commission (NUPRC).
Senior officials from the Nigerian Midstream and Downstream
Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the
Nigerian Ports Authority (NPA), representatives of the African Export-Import
Bank (Afreximbank), and the secretary of the committee, Hauwa Ibrahim, were
also at the meeting.
“The stakeholders reaffirmed the government’s continued
commitment to the full implementation of this strategic initiative, as directed
by the Federal Executive Council (FEC),” the ministry said.
“Thus, the Crude and Refined Product Sales in Naira
initiative is not a temporary or time-bound intervention, but a key policy
directive designed to support sustainable local refining, bolster energy
security, and reduce reliance on foreign exchange in the domestic petroleum
market.
“As with any major policy shift, the Committee acknowledges
that implementation challenges may arise from time to time.”
The ministry said the issues are being actively addressed
through coordinated efforts among all parties.
“The initiative remains in effect and will continue for as
long as it aligns with the public interest and supports national economic
objectives,” the ministry said.
The sale of crude oil and refined petroleum products in
naira to local refineries commenced on October 1, 2024, to improve supply, save
the country millions of dollars in petroleum products imports, and ultimately
reduce pump prices.
On March 10, NNPC halted the naira-for-crude deal until
2030, as the government-owned company has forward-sold all its crude oil.
Nine days later, the Dangote refinery said it had
temporarily halted the sale of petroleum products in naira.
The refinery said the decision to halt sales in naira was
“necessary to avoid a mismatch between our sales proceeds and our crude oil
purchase obligations, which are currently denominated in U.S. dollars”.
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