FG Introduces New Guidelines For Sale Of Crude Oil In Nigeria

FG Introduces New Guidelines For Sale Of Crude Oil In Nigeria

In a bid to reduce Nigeria’s dependency on imported refined petroleum products, the federal government has introduced new regulations governing the sale of crude oil to refineries within the country. The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has been tasked with overseeing the implementation of these regulations……READ ALSO FG Needs Your Support To Make Nigeria Better– Information Minister To Nigerians

Under the directive, all oil companies operating in Nigeria are mandated to supply crude oil to domestic refineries that are unable to secure their own crude supplies locally. Once these domestic supply commitments are met, oil producers can proceed with exporting crude oil as per existing regulations.

Payments for crude oil supplied to domestic refineries can be made in either dollars, naira, or a combination of both currencies.

To facilitate the process, the NUPRC will act as an intermediary between local refineries and oil producers, helping to negotiate and finalize sales purchase agreements based on a willing-buyer, willing-seller model.

The implementation of the Domestic Crude Oil Supply Obligation initiative is scheduled to commence in the second half of the year. However, the specific quantity of crude oil that each refinery is required to procure under this initiative is yet to be determined.

This move by the federal government underscores its commitment to enhancing domestic refining capacity and reducing Nigeria’s reliance on imported petroleum products, thereby fostering economic growth and self-sustainability in the energy sector.

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