Scarcity Looms As NNPC Fails To Deliver Crude To Dangote Refinery In Naira Deal
By Trek Africa Newspaper
The Nigerian National Petroleum Company Limited (NNPC) has yet to begin the planned supply of crude oil in naira to the Dangote Petroleum Refinery, which was scheduled to start on October 1, 2024, as of Thursday, October 3.
Trek Africa Newspaper reports that despite inquiries, officials from Dangote Refinery, the Nigerian Upstream Petroleum Regulatory Commission, the Federal Ministry of Finance, and NNPC have remained silent on the naira-for-crude deal.
Earlier reports indicated that the NNPC would supply 385,000 barrels per day of crude oil to the $20 billion Dangote refinery, with payments made in naira. This decision followed a Federal Executive Council approval in September 2024, aiming to reduce pressure on the naira and streamline petroleum product transactions.
However, as of October 3, multiple sources within domestic refineries confirmed they had not received any official communication about the deal’s commencement.
One source at a modular refinery noted that while the government assured operators the agreement was still on track, no formal communication had been received.
The Special Adviser on Media to the Federal Inland Revenue Service (FIRS) Chairman, Dare Adekanmbi, had previously confirmed that Zacch Adedeji, Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency, was working diligently to ensure the agreement’s timely execution.
He emphasized that the committee had been collaborating with NNPC and Dangote to finalize the deal’s modalities.
The naira-for-crude initiative is expected to stabilize the naira and enhance the availability of petroleum products in Nigeria. Diesel produced by Dangote would be sold to any interested party in naira, while petrol would be exclusively sold to NNPC.
