The federal government has given approval for indigenous refineries, including Dangote Refinery to buy crude oil in naira.
The refineries, however, also have the option of paying in dollars.
Chief executive officer, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, disclosed this at a briefing in Abuja, where he unveiled the new template for domestic crude oil supply obligation.
He said the new template guiding the activities for Domestic Crude Oil Supply Obligation was in compliance with the provisions of Section 109(2) of the Petroleum Industry Act 2021.
Komolafe explained that refineries could either buy crude in naira or dollar, adding that naira transactions would free the pressure on the country’s foreign exchange rate.
“Where the payment is in both currencies, the payment split shall be as agreed in the SPA between the producer and the refiner,” he added.
The NUPRC boss said the template was already effective as all necessary parties had signed up for it.
