The Federal Government has reaffirmed its commitment to sustaining the Naira-for-crude oil sale agreement with local refiners as part of its broader policy to reduce the cost of fuel production and strengthen the domestic refining sector.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, disclosed this in Lagos at the 2025 Crude Oil Refinery Owners’ Association of Nigeria (CORAN) Summit.

According to the Minister, the policy is a deliberate strategy to shield indigenous refiners from exchange rate volatility while supporting their growth and competitiveness.

“The Federal Government remains committed to sustaining the Naira-for-crude sale arrangement as it mitigates exposure to fluctuating foreign exchange rates and reinforces our drive for indigenous refining,” Lokpobiri stated.

He further emphasized that the government has continued to facilitate access to crude oil through the effective implementation of the Domestic Crude Oil Supply Obligation (DCSO), stressing that no nation can achieve true energy independence without refining its own crude.

“Every barrel of crude produced in Nigeria must contribute to meeting both our domestic and international obligations,” he added.

On regional integration, Senator Lokpobiri announced that the Federal Government has launched the West African Fuel Reference Market initiative.

The move, he explained, aims to position Nigeria as a regional refining and petroleum products supply hub for the West African subregion.

“With increased local refining capacity, Nigeria will not only meet domestic demand but also serve as a dependable supplier of refined products to neighbouring countries — thereby reducing the region’s reliance on distant refineries and costly maritime imports,” the Minister said.