Dangote vs NNPC: Concerns as Naira-for-Crude Deal Fails to Kickstart 3 Days after Deadline
- There are indications that the Dangote Petroleum Refinery has not yet received its crude oil supply from NNPCL in naira
- The Federal Ministry of Finance, NNPC, and the Nigerian Upstream Petroleum Regulatory Commission are quiet on the deal
- Reliable sources from three local refineries stated that they were not aware if the agreement had commenced
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
As of Thursday, October 3, there are signs that the Nigerian National Petroleum Company Limited's supply of crude oil in naira to the Dangote Petroleum Refinery, which was supposed to start on October 1, 2024, has not yet started.
Source: UGC
When asked for updates on the naira-for-crude agreement between NNPC and Dangote, officials at the refinery, the Nigerian Upstream Petroleum Regulatory Commission, the Federal Ministry of Finance, and NNPC, among others, remained silent.
The technical sub-committee on Domestic Sales of Crude Oil in local currency had confirmed the day before that NNPC would start supplying crude in naira to the Dangote refinery on Tuesday, October 1, 2024, according to a report published in The PUNCH on Monday.
The committee declared on September 13, 2024, that the Federal Executive Council, led by President Bola Tinubu, had authorised the naira purchase of petroleum products and the naira sale of crude to local refineries.
“From October 1, NNPC will commence the supply of about 385kbpd (385,000 barrels per day) of crude oil to the Dangote refinery to be paid for in naira,” the committee had declared.
When asked on Sunday if the arrangement for the crude oil supply to the $20 billion Lekki-based facility was still in place, Dare Adekanmbi, the Special Advisor on Media to the FIRS Chairman, had replied in the affirmative.
“I can confirm that the Chairman of the Sub-Technical Committee, Zacch Adedeji, is working day and night to ensure that things go according to plans. He knows how important it is to have the agreement implemented as has been planned for the benefit of Nigerians,” Adekanmbi had stated.
But on Thursday, reputable sources with three local refineries stated that they were not aware if the deal had began.
When contacted by our journalist seeking updates on the contract, NNPC officials remained silent and sent him to the ministry of Finance for information. Similarly, when contacted, the ministry of finance did not respond.
Nonetheless, a high-ranking official from a domestic refinery stated that Dangote and other crude oil refiners were still waiting on the Federal Government to supply crude in naira.
The official further mentioned that the government, via its committee on crude-for-naira, had guaranteed operators that every effort was being made to fulfill the agreement.
“You know that said it was to start on October 1, the technical committee is the one in charge now and they are working on it. They are supposed to arrive at a particular agreement and communicate it to us.
“But I can tell you that as of this moment, we haven’t received that communication yet. We are still waiting for them,” the operator who spoke in confidence due to lack of authorisation to speak on the matter, stated.
Group Tells FG to Increase Stake in Dangote Refinery
Legit.ng reported that the Petroleum and Natural Gas Senior Staff Association of Nigeria had requested that the federal government expand its stake in the Dangote Petroleum Refinery from the existing 7% to at least 45% to provide assurance and energy security.
It was stated that doing this would give the public even more energy security and assurance.
Festus Osifo, the president of PENGASSAN, made the request on Tuesday in Lagos while delivering the organisation's communiqué and suggestions from the most recent Energy and Labour Summit, according to a Punch report.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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