Naira-for-crude deal begins Tuesday as Nigerians await reduced fuel prices

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In an effort to lower the price of Premium Motor Spirit (Petrol), the Nigerian government has announced that the Nigerian National Petroleum Company Limited will start supplying oil in Naira to the Dangote Refinery on Tuesday, October 2, 2024.

This was confirmed in a statement released on Sunday by Dare Adekanmbi, the spokesperson for Zacch Adedeji, the chairman of the Federal Inland Revenue Service, and the chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency.

He said, “I can confirm to you that the Chairman, Sub-Technical Committee, Zacch Adedeji, is working day and night to ensure that things go according to plans. He knows how important it is to have the agreement implemented as has been planned for the benefit of Nigerians.”

This comes after the committee revealed on September 13, 2024, that the Federal Executive Council, led by President Bola Tinubu, had approved the naira-based purchase of petroleum products and the naira-based sale of crude to nearby refineries, with the latter to start on October 1, 2024.

The Committee said, “From October 1, NNPC will commence the supply of about 385kbpd (385,000 barrels per day) of crude oil to the Dangote refinery to be paid in naira,” the committee declared.

According to the agreement, NNPC will provide the Dangote refinery with around 11.5 million barrels of crude oil each month. In addition, the plant will release comparable amounts of refined gasoline and diesel into the local market in naira.

On Sunday, Eche Idoko, the Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, declared that the Naira for crude agreement had to be expanded to encompass not only Dangote Refinery but also other modular refineries around the nation.

“The committee is only discussing with Dangote at the moment.”

The price of gasoline will decrease when crude oil is sold to Dangote Refinery and other refineries in Naira, Petroleum Marketers previously informed ZINGTIE.

The Petroleum Products Retail Outlets Owners Association of Nigeria’s National President, Billy Gillis-Harry, announced this in August 2024.

The development occurs after NNPCL issued new pricing subsequent to the lifting of Dangote Petrol on September 15, 2024, and Nigerians purchase fuel nationally for between N950 and N1,100 per litre.

The $20 billion refinery disputed with the state-owned oil company’s revelation that it paid N898 a litre for Dangote Refinery gasoline.

When the Naira deal’s crude sale began, Dangote Refinery requested Nigerians to wait for the Adedeji-led committee to disclose the product’s pricing.

Aliko Dangote, the president of the Dangote Group, recently asserted that his gasoline was less expensive than imported fuel, however he omitted to provide the exact cost of his fuel.

Nonetheless, the House of Representatives has ordered Dangote Refinery to disclose the cost of its Petrol but up to date, that information has remained private.

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