The Federal Government has discredited reports that claim that local refineries have been forced to trust international crude oil purchases about the interruption of crude oil supply agreements based in Naira.
Zacch Adedeji, president of the Federal Internal Income Service (FIRS) and president of the Technical Subcommittee on the implementation of the policy, in a statement on Monday, said that “the reports do not reflect the realities of the current work under the initiative of the Federal Executive Council on national sales of crude oil and refined products in Naira.”
According to him, the national sales framework in Naira follows in place.
“As the Committee promotes the implementation of this initiative, we want to provide an update on the Federal Executive Council initiative and confirm as follows:
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“The national sales framework in Naira remains in place
The policy framework that allows the sale of crude oil in Naira for domestic refining remains in force. The initiative was designed to guarantee the stability of the supply and optimize the use of local refining capacity. There has not been a decision at the policy level to suspend this approach or is being considered. After implementing the policy for a few months, the evidence that is the right way is abundant and will continue to help the economy.
“Local refineries have not been excluded from the national supply of crude
The participation process for the supply of crude oil to national refineries, therefore, remains in force through structured agreements, balance factors such as availability, demand and market conditions. There is no exclusion from local access refineries to domestic crude. The UPSTREAM Nigeria Petroleum Regulatory Commission (NUPRC) is actively guaranteeing compliance with the provisions of national crude oil obligations of the Petroleum Industry Law.
“The initiative supports competitive prices and market efficiency
The framework for national oil transactions is designed to promote a competitive and efficient prices environment. “
Continuing, ADEDEJI said that the Committee continues in its work to strengthen the implementation, reaffirming its commitment “to guarantee the efficient execution of this online initiative with its central objectives, which increase the local refining, reduces exposure to currencies and stabilizes the internal fuel supply.”
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