The Federal Government swiftly responded to the requests of local crude oil refiners and industry players by announcing that domestic refineries now have the choice to buy crude oil in either naira or dollars. Nigeria's combined crude oil and condensate reserves have reached 37.5 billion barrels as of January 1, 2024, with a life index of 68.01 years.
This information was shared during a presentation in Abuja by the Nigerian Upstream Petroleum Regulatory Commission, where they introduced a new format for domestic crude oil allocation. The NUPRC, in line with Section 109(2) of the Petroleum Industry Act 2021, unveiled a new template outlining requirements for Domestic Crude Oil Supply Obligation, signifying a significant operational development.
Gbenga Komolafe, the Chief Executive of NUPRC, explained that the commission, alongside stakeholders, devised the template to facilitate smooth implementation of the DCSO and ensure consistent crude oil supply to domestic refineries.
Regarding the preferred currency for transactions, Komolafe clarified that purchases can be made in either naira or dollars, with naira transactions potentially easing pressure on the nation's foreign exchange rate.
This aligns with the intent of the Petroleum Industry Act to foster midstream development, a provision hailed as commendable.
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