The Nigerian National Petroleum Company Limited (NNPCL) has allocated a large portion of crude oil to foreign creditors to settle debts, making it difficult to supply local refiners, including the Dangote Petroleum Refinery. This situation has disrupted the naira-for-crude agreement between NNPCL and Dangote.
Sources from the Federal Ministry of Finance and the Ministry of Petroleum Resources confirmed that the Technical Sub-Committee on the Naira-for-Crude Policy will meet on Monday to discuss possible solutions. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been directed to propose options for review.
On Wednesday, Dangote Refinery announced a temporary suspension of petroleum product sales in naira, citing a mismatch between crude oil purchase costs (denominated in US dollars) and local sales proceeds. This led to a rise in fuel loading costs at private depots in Lagos, jumping from below N850/litre to about N900/litre.
Petroleum marketers have expressed concerns over the suspension and are considering alternatives such as sourcing fuel from NNPCL, other local refineries, or through importation. The President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis Harry, emphasized the need for multiple supply sources to stabilize the market and prevent fuel scarcity.
Meanwhile, NNPCL has not confirmed or denied Dangote’s claim that it has been purchasing crude oil in dollars. However, NNPCL spokesperson Olufemi Soneye stated that crude supply to local refiners remains based on mutually agreed terms.
Industry stakeholders hope for a swift resolution to prevent further disruptions in fuel supply and pricing.