Nigeria on way to cut dependence on imported refined oil

Nigeria’s oil regulator (NUPRC) reached a deal with producers to ensure steady supply of crude to local oil refineries, a move that would help the country cut dependence on imported fuel.

Africa’s richest oil country imports most of its refined oil needs partly due to oil majors demanding excessive premiums or saying they had no available supplies.

“We will never allow price strangulation to disincentivize our domestic refining capacity optimization,” NUPRC’s chief Gbenga Komolafe said following talks with oil companies grouped under the Oil Producers Trade Section (OPTS).

Under the new deal, producers will sell crude at market price to local refineries, NUPRC said.

By ensuring fair pricing and a mutually beneficial framework, the deal seeks to prevent local refineries from facing off-the-curve prices and promote a steady supply for their operations

The reliance on imported petroleum products has affected the Naira’s exchange rate, impacting inflation and overall economic stability in Africa’s most populated country.