The Federal Government’s Naira-for-Crude panel is set to reconvene on Monday to assess the continuation of the crude supply deal with Dangote Refinery, following the refinery’s recent decision to suspend petroleum product sales in Naira.
Reliable sources within the Ministries of Petroleum Resources and Finance, who spoke on condition of anonymity, confirmed the development on Thursday.
Dangote Refinery’s suspension of Naira-denominated petroleum sales signals a deadlock in discussions between the Nigerian National Petroleum Company Limited (NNPCL) and the refinery over the continuation of the crude-for-Naira arrangement. However, insiders suggest that the scheme is unlikely to be scrapped entirely.
“The scheme won’t end. The key challenge is crude availability, as NNPC has already pre-sold significant crude volumes to foreign creditors under its crude-backed loans,” a source revealed.
The panel, which last convened at the Ministry of Finance headquarters in Abuja, will review recommendations from the Nigeria Upstream Petroleum Regulatory Commission to explore potential solutions to the supply bottleneck.
The high-level meeting last week was attended by Minister of Finance and Coordinating Minister of the Economy, Wale Edun (virtually), Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, NNPCL’s Chief Financial Officer, and representatives from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, among other stakeholders.
Meanwhile, industry players have expressed concerns over the policy’s fate. National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, stated that marketers are prepared to source alternative supplies if necessary.
“The market is making preparations for any surprises. If there are changes, we will have alternatives,” he said.
Similarly, the President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, urged the government to renegotiate terms with Dangote Refinery to stabilize fuel prices.
“I advise the FG to revisit its agreement with Dangote to maintain price stability in the petroleum sector,” he stated.
As uncertainties linger, all eyes are on the upcoming Monday meeting, which could determine the future of the Naira-for-Crude initiative.
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