Selling crude in naira not yet implemented

On Monday, it was reported that the Dangote refinery and other local refineries in Nigeria have not yet begun purchasing crude oil from the NNPC in naira, as directed by President Tinubu.

The Crude Oil Refiners Association of Nigeria (CORAN) indicated that while individual refiners have submitted requests to the NNPC for crude, there has been no response. The Federal Executive Council recently approved a proposal to sell crude to Nigerian refineries, including the Dangote refinery, in naira, with a fixed exchange rate for the transaction.

However, nearly a week after the announcement, refiners have yet to receive any communication from the NNPC. Eche Idoko, Publicity Secretary of CORAN, stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should initiate the process by convening a meeting of all parties or ensuring NNPC responds to the requests.

Idoko highlighted that selling crude to local refineries in naira could lower petrol costs and strengthen the naira. He praised Tinubu for considering indigenous refiners’ needs but emphasized the need for an executive order or new regulations to enforce the policy.

The Dangote Group has reported ongoing difficulties in securing crude oil, alleging that international oil companies (IOCs) are hindering supply by insisting on selling through foreign agents at inflated prices. The group claimed that IOCs are prioritizing Asian markets over Nigerian refineries.

A senior official at the Dangote refinery confirmed that the plant has not yet begun purchasing crude in naira from the NNPC.