FG To Reconvene Panel On Naira-for-Crude Deal With Dangote Refinery

The Federal Government’s Naira-for-crude panel is set to reconvene on Monday to deliberate on the continuation of its crude supply agreement with Dangote Refinery, amidst ongoing uncertainty over fuel prices.

Sources within the Ministries of Petroleum Resources and Finance, speaking on condition of anonymity, disclosed this development on Thursday.

Naija News reports that this follows Dangote Refinery’s recent decision to halt the sale of petroleum products in Naira, signaling a deadlock in negotiations with the Nigerian National Petroleum Company Limited (NNPCL) regarding the ongoing crude-for-Naira arrangement.

Despite this impasse, officials familiar with the matter have indicated that the scheme may still proceed.

A key issue, however, is NNPCL’s limited crude availability, as substantial volumes have already been committed to foreign creditors under crude-backed loan agreements.

According to Daily Post, a government source disclosed that NNPCL is grappling with crude availability due to its commitment to crude-backed loan agreements with foreign creditors.

To address these concerns, the committee has directed the Nigeria Upstream Petroleum Regulatory Commission to explore viable solutions, which will be reviewed in Monday’s meeting.

“The scheme won’t end. The challenging point is the issue of crude availability, with NNPC claiming it has pre-sold large volumes of crude.

“The committee agreed to reconvene on Monday (next week) to review options that the Nigeria Upstream Petroleum Regulatory Commission has been mandated to come up with. The committee is trying to dimension solution options,” an official source stated.

Last week, the committee convened at the Ministry of Finance headquarters in Abuja to review the policy and reaffirm commitment to its framework.

Attendees included Finance Minister and Coordinating Minister of the Economy, Wale Edun (who joined virtually), the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, the Chief Financial Officer of NNPCL, and the Executive Commissioner of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (who also participated virtually), alongside other key stakeholders.

Addressing the situation, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, noted that marketers are prepared for any eventualities.

“The market is making preparations for any surprises. So, if there are surprises, we’ll have alternatives to go to,” he said.

Similarly, President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, urged the government to intervene and ensure the continuation of the Naira-for-crude policy to stabilize fuel prices.

“I would like to advise the FG to look into the agreement with Dangote again to maintain the tempo of the price of petroleum products,” he stated.