In a move to bolster the Naira, the Nigerian government has greenlighted the sale of crude oil to local refineries including Dangote.
Details were revealed by Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, during a briefing in Abuja on Monday.
Nigeria’s total reserves of crude oil and condensate have surged to 37.5 billion barrels as of January 1, 2024, with an estimated lifespan of 68.01 years.
Collaborating with stakeholders from NNPC Upstream Investment Management Services, representatives of Crude Oil/Condensate Producers, Crude Oil Refinery-Owners Association of Nigeria, and Dangote Petroleum Refinery, the commission devised a plan to streamline the process.
This initiative aims to facilitate the seamless execution of the DCSO and ensure a steady crude oil supply to domestic refineries.
Addressing the implementation of crude oil obligations, Komolafe mentioned, “The Petroleum Industry Act, PIA seeks to simplify the process for producers and refineries.”
He further explained, “The chosen currency for the transactions could be either in Naira or dollar. Opting for Naira could alleviate pressure on the exchange rate, thereby aiding its stability.”
“This move will support the exchange rate. It aligns with the objectives of the Petroleum Industry Act, particularly in advancing our midstream sector, a commendable provision of the PIA,” he emphasized.