The much-anticipated naira-for-crude oil deal between the Nigerian National Petroleum Company Limited (NNPC) and the Dangote Petroleum Refinery, expected to begin on October 1, 2024, has yet to commence as of Thursday, October 3.
Despite multiple attempts to get updates from key stakeholders, including the NNPC, the Nigerian Upstream Petroleum Regulatory Commission, and the Ministry of Finance, officials remained tight-lipped about the delay.
Earlier, it was reported that the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency had confirmed that NNPC would supply 385,000 barrels per day (bpd) of crude oil to the Dangote refinery, with payments to be made in naira.
This plan was part of the Federal Executive Council’s initiative, approved in mid-September under President Bola Tinubu’s leadership, to sell crude to local refineries in naira, with the corresponding purchase of petroleum products also conducted in naira.
Zacch Adedeji, Chairman of the Technical Sub-Committee and also the Federal Inland Revenue Service (FIRS) boss, had assured the public that everything was on track, saying, “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.”
However, by Thursday, sources within Nigeria’s domestic refineries disclosed to The Punch that the deal had not yet been finalized.
One refinery operator explained, “We haven’t received that communication yet. We are still waiting for them.”
Another source familiar with the situation at a major modular refinery stated, “The crude oil refiners’ body in Nigeria hasn’t been communicated yet on the deal. So we await the official communication because up till last week, we spoke with them (the government) and they assured us that the deal was still on course.”
Officials at NNPC referred inquiries to the Ministry of Finance, but no clear updates were provided.
Despite the uncertainty, both government and industry insiders continue to say that the deal is still being worked on, and efforts to finalize the agreement are ongoing.
The Federal Government’s naira-for-crude initiative aims to reduce pressure on the naira, lower transaction costs, and enhance the availability of petroleum products nationwide.
The plan involves NNPC purchasing petroleum products such as PMS (petrol) and diesel from the Dangote refinery, with all associated costs being paid in naira.
As of now, all eyes remain on the government for an official update on when the long-awaited supply of crude in naira will commence.
