The Federal Government has stated that the sale of crude oil and refined products in Naira would continue for as long as it aligns with the public interest and supports the national economy.
This decision was reached on Tuesday after the Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative held its meeting in Abuja.
TheFact Daily reports that the sale of crude oil and refined products in Naira which officially commenced on October 1, 2024, in line with the Federal Executive Council (FEC) directive, was designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.
However, the initiative has been battling implementation challenges with the Nigerian National Petroleum Company Limited (NNPC Ltd) and the Dangote Petroleum Refinery pulling out of the deal.
The national oil company while clarifying its position recently, noted that 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.
It however, disclosed that discussions were ongoing towards emplacing a new contract.
Meanwhile, the Committee meeting which was presided by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, yesterday reviewed progress and addressed the implementation matters.
The stakeholders at the meeting reaffirmed the government’s commitment to the full implementation of the strategic initiative, as directed by the FEC.
The Committee while acknowledging that implementation challenges may arise from time to time, noted that such issues are being actively addressed through coordinated efforts among all relevant parties.
“The initiative remains in effect and will continue for as long as it aligns with the public interest and supports the national economy,” it said.
The meeting was attended by the Chairman of the Implementation Committee, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; the Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji; the Chief Financial Officer of NNPC Limited, Mr. Dapo Segun; the Coordinator of NNPC Refineries; Management of NNPC Trading; representatives of Dangote Petroleum Refinery and Petrochemicals; and senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), representative of Afreximbank, as well as the Secretary of the Committee, Hauwa Ibrahim.
