Finance Minister, NNPCL Review Crude Oil Sales Policy
The Technical Sub-Committee on the Naira-for-Crude Policy met on Thursday at the Ministry of Finance Headquarters in Abuja to assess developments and reaffirm commitments to the policy framework, a senior government official said.
The source, who spoke on condition of anonymity as he was not authorised to speak publicly on the matter, said the meeting had in attendance the Minister of Finance 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 the Nigerian National Petroleum Company, and the Executive Commissioner of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (who also joined virtually).
Others were the Special Adviser to the Minister, Nana Ibrahim, the Coordinator of NNPC Refineries, as well as representatives from the Nigerian Upstream Petroleum Regulatory Commission, the Central Bank of Nigeria, Dangote Petroleum Refinery, and NNPC Trading Ltd.
According to the source, the NNPC presented a crude delivery report detailing the volume of crude oil allocated for domestic refining under the policy.
The NMDPRA provided a domestic production report covering the Dangote Petroleum Refinery and Petrochemicals, NNPC Warri Refinery, and Port Harcourt Refinery, while the NUPRC gave an update on crude availability for local refining to ensure a steady supply for domestic refiners.
Representatives from Dangote Refinery and NNPC Refineries also provided updates on local refineries.
Earlier, it was reported that the Nigerian National Petroleum Company Limited (NNPCL) initiated fresh negotiations with the Dangote Petroleum Refinery over the renewal of the naira-for-crude agreement, as talks are underway in anticipation of the expiration of the initial deal, which ends on March 31, 2025.
The NNPCL disclosed this in a statement issued on Monday in response to claims that the government-owned oil company had suspended the naira-for-crude deal until 2030, as it has forward-sold all its crude oil.
This came as fresh findings indicated that crude oil worth about N486.31bn was received by the $20bn Lekki-based refinery under the deal between October and December 2024.
On October 1, 2024, the government commenced the sale of crude oil in naira to local refineries to improve supply, save the country millions of dollars in petroleum product imports, and ultimately reduce the pump prices of refined products.
The NNPCL Chief Corporate Communications Officer, Olufemi Soneye, in the statement on Monday, explained that the initial deal was for six months.
He also stated that under the deal initiated in October 2024, the 650,000-capacity refinery has received 48 million barrels to refine for petroleum products, while a total of 84 million barrels has been supplied to the refinery since it commenced operations in 2023.
Similarly, the Chairman of the Technical Sub-Committee on the naira-for-crude deal, Zacch Adedeji, reaffirmed the government’s stance, emphasising that the termination of the contract was never a consideration.
He said there is substantial evidence supporting the policy as the correct approach and affirmed that it will continue to contribute positively to the nation’s economy.
