As of Thursday, October 3, 2024, the expected supply of crude oil in naira from the Nigerian National Petroleum Company Limited (NNPC) to the Dangote Petroleum Refinery, set to begin on October 1, has not yet commenced.
Officials from the Dangote refinery and regulatory bodies—including the Nigerian Upstream Petroleum Regulatory Commission, the Federal Ministry of Finance, and NNPC—have not responded to inquiries regarding the status of the naira-for-crude agreement.
On Monday, the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency confirmed that the NNPC would start supplying approximately 385,000 barrels per day of crude to the Dangote refinery, to be paid for in naira. This announcement followed a Federal Executive Council decision, led by President Bola Tinubu, on September 13, 2024, to allow crude sales to local refineries in naira.
Zacch Adedeji, Chairman of the Technical Sub-Committee and the Federal Inland Revenue Service, emphasized the importance of implementing the agreement for the benefit of Nigerians. A spokesperson for Adedeji reiterated on Sunday that he was actively ensuring the plan moved forward.
However, by Thursday, multiple sources from domestic refineries indicated they had no updates regarding the commencement of the deal. NNPC officials redirected inquiries to the Ministry of Finance, which also did not provide answers.
A senior official from a domestic refinery stated that refiners, including Dangote, were still waiting for the government to initiate the supply of crude in naira. They had been assured that efforts to facilitate the deal were ongoing. “As of now, we haven’t received any official communication,” the operator noted, speaking on condition of anonymity due to a lack of authorization.
Another source from a major modular refinery added, “The refiners’ body in Nigeria has yet to receive any updates on the deal. While the government assured us last week that everything was still on track, deals like this often take time to finalize, with many details needing resolution.”
In September, the government explained that the naira-for-crude initiative aims to alleviate pressure on the naira, cut unnecessary transaction costs, and enhance the availability of petroleum products nationwide. Adedeji had previously stated that the implementation committee, led by the Minister of Finance, was working closely with NNPC and the Dangote refinery to finalize the operational details of the initiative.
The plan includes the Dangote refinery supplying petrol and diesel of equivalent value to the domestic market, also paid for in naira. Diesel will be sold to interested off-takers, while petrol will be exclusively supplied to NNPC, which will then distribute it to various marketers. All associated regulatory costs will similarly be settled in naira.
Adedeji further noted that the technical committee would transition into an execution and monitoring committee, operating out of Lagos for the next three to six months to ensure effective implementation.
