The Federal Government’s Naira-for-Crude panel is set to reconvene on Monday to deliberate on the continuation of its crude sales deal with Dangote Refinery. This development comes in the wake of growing uncertainty surrounding petroleum product prices and Dangote Refinery’s recent decision to halt fuel sales in Naira.
Sources within the Ministries of Petroleum Resources and Finance, who spoke on condition of anonymity, confirmed the scheduled meeting, highlighting concerns over the state of negotiations between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery regarding the policy’s future.
The refinery’s abrupt suspension of Naira-based petroleum sales signals a deadlock in discussions, raising speculation that the deal could be scrapped. However, officials familiar with the matter revealed that the scheme is unlikely to be discontinued.
A major challenge facing the agreement is crude availability, as NNPCL has already committed large volumes of crude to foreign creditors through its crude-backed loan agreements. This has limited the company’s capacity to supply Dangote Refinery under the existing arrangement.
“The scheme won’t end. The main issue is crude availability, with NNPC confirming it has pre-sold significant volumes. The committee has decided to reconvene on Monday to explore possible solutions that the Nigeria Upstream Petroleum Regulatory Commission has been tasked with developing,” an official disclosed.
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Last week, the committee met at the Ministry of Finance headquarters in Abuja to review developments and reaffirm the government’s commitment to the Naira-for-Crude policy framework. The high-level meeting included Finance Minister and Coordinating Minister of the Economy Wale Edun (who participated virtually), Federal Inland Revenue Service Chairman Dr. Zacch Adedeji, NNPCL’s Chief Financial Officer, and the Executive Commissioner of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, among others.
In response to the unfolding situation, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, hinted that industry players may explore alternative supply sources if uncertainties persist.
“The market is preparing for any surprises. If there are disruptions, we will have alternative sources,” he stated.
Similarly, the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, called for government intervention to sustain the Naira-for-Crude policy, warning that its discontinuation could destabilize petrol pricing.
“I urge the Federal Government to reassess its agreement with Dangote Refinery to ensure stability in petroleum product prices,” he said.
As the panel prepares to meet again, industry stakeholders and consumers will be watching closely, as the outcome could have significant implications for fuel pricing and supply across Nigeria.
