The Federal Government’s naira-for-crude panel is set to reconvene on Monday to discuss the continuation of its crude supply agreement with Dangote Refinery, as uncertainty over fuel prices persists.
Sources within the Ministries of Petroleum Resources and Finance disclosed this development on Thursday, following Dangote Refinery’s recent decision to halt the sale of petroleum products in naira.
This move signals an unresolved deadlock in negotiations with the Nigerian National Petroleum Company Limited over the ongoing crude-for-naira arrangement. Despite this impasse, officials familiar with the matter have indicated that the scheme may still proceed. However, a key challenge remains the limited availability of crude, as substantial volumes have already been committed to foreign creditors under crude-backed loan agreements. To address these concerns, the committee has tasked the Nigeria Upstream Petroleum Regulatory Commission with exploring viable solutions, which will be reviewed in Monday’s meeting.
One official explained that the crude supply scheme would not be discontinued but acknowledged that the main issue lies in the availability of crude, given that NNPC has already pre-sold large volumes. As a result, the committee has agreed to reconvene on Monday to evaluate the options put forward by the regulatory commission.
Last week, the committee met at the Ministry of Finance headquarters in Abuja to assess the policy framework and reaffirm its commitment to the agreement. The meeting was attended by key stakeholders, including Finance Minister and Coordinating Minister of the Economy Wale Edun, who joined virtually, Executive Chairman of the Federal Inland Revenue Service Dr. Zacch Adedeji, the Chief Financial Officer of NNPC, and the Executive Commissioner of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, who also participated virtually.
Amid these developments, industry stakeholders are preparing for any potential market disruptions. The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, noted that the market is making contingency plans to handle possible surprises. Meanwhile, the President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, urged the government to intervene and ensure the continuity of the naira-for-crude policy to stabilize fuel prices. He advised the federal government to review its agreement with Dangote Refinery to maintain stable petroleum product pricing.
As the Monday meeting approaches, attention remains on the government’s next steps in navigating this standoff and its implications for the country’s energy sector.
