The Federal Government’s Technical Sub-Committee on the Naira-for-Crude Policy will reconvene on Monday to address the ongoing crisis surrounding crude oil allocations by the Nigerian National Petroleum Company Limited (NNPCL) to foreign creditors. This development comes amid mounting challenges in sustaining the naira-for-crude agreement between NNPCL and domestic refiners, including the Dangote Petroleum Refinery.
Insiders revealed that NNPCL had allocated large volumes of crude oil to foreign creditors in order to settle outstanding loans, which has significantly impacted the availability of crude for domestic refineries. This allocation strategy has created difficulties in meeting the crude supply demands of local refiners, particularly the Dangote refinery, which was initially part of the naira-for-crude arrangement.
Sources from the Federal Ministry of Finance and the Federal Ministry of Petroleum Resources confirmed on Thursday that the committee will review potential solutions to restore the naira-for-crude deal. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been tasked with presenting viable options to the committee, which will be discussed in the upcoming meeting.
In the meantime, oil marketers have expressed concern over the suspension of the sale of petroleum products in naira by the Dangote refinery. The move has forced marketers to seek alternative avenues for purchasing petroleum products, which could further disrupt the local market.
As the committee prepares to deliberate on potential solutions, industry stakeholders are anxiously awaiting developments that could stabilize the situation and safeguard the future of Nigeria’s domestic refining sector.
