The Technical Sub-Committee on the Naira-for-Crude Policy met on Thursday at the Ministry of Finance Headquarters in Abuja to assess developments and reaffirm commitments to the policy framework.
Naira-for-Crude meeting had in attendance keys stakeholders, including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and representatives from the Nigerian National Petroleum Company Limited (NNPCL), the Federal Inland Revenue Service (FIRS), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The Naira-for-Crude Policy was initiated in October 2024 to improve the supply of petroleum products, save the country millions of dollars in imports, and ultimately reduce the pump prices of refined products.
The policy allows local refineries to purchase crude oil in naira, rather than dollars, to boost domestic refining and reduce reliance on imported petroleum products.
The meeting aimed to review the progress of the policy, address challenges, and reaffirm commitments to the policy framework. The stakeholders discussed the crude delivery report, domestic production report, and updates on local refineries.
The NNPCL presented a crude delivery report detailing the volume of crude oil allocated for domestic refining under the policy. The report showed that the company has supplied 48 million barrels of crude oil to local refineries since the policy’s inception.
The NMDPRA provided a domestic production report covering the Dangote Petroleum Refinery and Petrochemicals, NNPC Warri Refinery, and Port Harcourt Refinery. The report highlighted the progress made by local refineries in increasing domestic production.
Representatives from Dangote Refinery and NNPC Refineries provided updates on the current state of local refineries. The updates highlighted the challenges faced by local refineries, including inadequate infrastructure and funding.
The stakeholders discussed future plans to boost local refining, including increasing funding for local refineries and improving infrastructure.
The meeting concluded with a commitment to continue working together to achieve the objectives of the Naira-for-Crude Policy.
The Naira-for-Crude Policy is crucial to Nigeria’s economic development, as it aims to reduce reliance on imported petroleum products and boost domestic refining. The policy has the potential to create jobs, stimulate economic growth, and reduce the country’s dependence on foreign exchange.
The review of the Naira-for-Crude Policy by the Technical Sub-Committee is a positive step towards achieving the policy’s objectives. The meeting demonstrated the commitment of stakeholders to work together to boost local refining and reduce reliance on imported petroleum products.