Stakeholders review naira-for-crude policy as Dangote finally brings down price again
- The Ministry of Finance Headquarters recently hosted a meeting of the Technical Sub-Committee on the Naira-for-Crude Policy
- According to the source, NNPC supplied a crude delivery report that detailed the quantity of allocated crude oil
- An update on crude availability for local refining was provided by the NUPRC to ensure a steady supply for domestic refiners
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To evaluate developments and restate pledges to the policy framework, the Technical Sub-Committee on the Naira-for-Crude Policy convened on Thursday at the Ministry of Finance Headquarters in Abuja, a senior government source told The PUNCH.
Source: UGC
The source claims that NNPC provided a crude delivery report that included information on the amount of crude oil allotted for local refining under the scheme.
To guarantee a consistent supply for domestic refiners, the NUPRC supplied an update on crude availability for local refining, while the NMDPRA offered a domestic production report encompassing the Dangote Petroleum Refinery and Petrochemicals, NNPC Warri Refinery, and Port Harcourt Refinery,
Updates on local refineries were also given by representatives of NNPC Refineries and Dangote Refinery.
According to a previous report by the PUNCH, the Nigerian National Petroleum Company Limited and the Dangote Petroleum Refinery have begun new negotiations regarding the renewal of the naira-for-crude agreement. The talks are taking place in preparation for the initial agreement's expiration on March 31, 2025.
In a statement released on Monday, the NNPCL revealed this in reaction to rumors that the government-owned oil company had terminated the naira-for-crude agreement until 2030 because it had already forward-sold all of its crude oil.
The PUNCH recently revealed that the $20 billion refinery in Lekki received crude oil valued at around N486.31 billion as part of the agreement between October and December 2024.
To increase supplies, save the nation millions of dollars on petroleum product imports, and eventually lower the pump prices of refined products, the government started selling crude oil to local refineries in naira on October 1, 2024.
In the statement released on Monday, Olufemi Soneye, the Chief Corporate Communications Officer for the NNPCL, clarified that the original agreement was for a period of six months.
He added that the 650,000-capacity refinery has received 48 million barrels to refine for petroleum products under the agreement started in October 2024, and that the refinery has received 84 million barrels in total since it started operating in 2023.
Source: Getty Images
In a same vein, Zacch Adedeji, the chairman of the Technical Sub-Committee on the naira-for-crude transaction, reiterated the government's position and emphasized that contract termination was never taken into account.
He confirmed that the strategy will continue to have a good impact on the country's economy and stated that there is strong evidence to support it as the right course of action.
Meanwhile, Dangote Refinery recently announced On Thursday, March 13, 2025, the Dangote Refinery escalated the petrol price war by quietly lowering the PMS price at its loading gantry.
The giant refinery crashed petrol prices from N825 per litre to N815.
FG confirms status of naira for crude oil agreement
Legit.ng reported that Heineken Lokpobiri, the minister of petroleum resources (oil), has clarified that the government has not terminated the naira for crude oil arrangement.
The deal involves the Nigerian National Petroleum Company Limited (NNPCL) supplying crude oil to domestic refineries, including the Dangote Refinery, with payments made in naira.
Speaking to journalists on Tuesday, March 11, Lokpobiri noted that the deal has not been called off by the government.
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Source: Legit.ng
