UPDATED: Crude for Naira: Tinubu’s aides meet with Dangote, NNPC, reach agreement

A meeting between a presidential delegation and officials of the Dangote refinery, the Nigerian National Petroleum Company Limited (NNPC Ltd) and other parties has agreed to extend the policy of selling Nigerian crude to local refineries in naira.

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The Ministry of Finance disclosed this in a post on its X handle.

The Tuesday meeting also resolved that the policy, including the sale of the products obtained from such crude in naira, will not have a terminal date.

“The Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market,” the finance ministry stated.

PREMIUM TIMES reported that the Dangote refinery, currently the largest supplier of petrol to the Nigerian market, had threatened to start selling its refined products in dollars because it was finding it difficult to obtain crude from the NNPC in naira. This would have resulted in an increase in the pump price of petrol to Nigerians.

Dangote refinery’s officials attended Tuesday’s meeting, the finance ministry stated.

“The meeting was attended by the Chairman of the Implementation Committee, Hon. Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; the Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji; the Chief Financial Officer of NNPC Limited, Mr Dapo Segun; the Coordinator of NNPC Refineries; Management of NNPC Trading; representatives of Dangote Petroleum Refinery and Petrochemicals; and senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), representative of Afreximbank, as well as the Secretary of the Committee, Hauwa Ibrahim,” the ministry wrote.

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The ministry explained that the stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC).

“As with any major policy shift, the committee acknowledges that implementation challenges may arise from time to time.

“However, such issues are being actively addressed through coordinated efforts among all parties. The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives.”

In July last year, FEC directed NNPC Ltd to engage Dangote Refinery and other local refineries to resolve the dispute over the sale of crude oil to them.

The FEC, presided over by President Bola Tinubu, also directed that crude oil sales to the refineries be made in naira and that the refineries, located in Nigeria, sell their refined products to the Nigerian market in naira.

Last October, the Nigerian government said it officially commenced selling crude oil and refined petroleum products in Naira.

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On 10 March, the NNPC Ltd said the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025. At the time, the NNPC said discussions were currently ongoing towards emplacing a new contract.

Reacting to reports alleging unilateral termination of the crude oil sale agreement between NNPC and Dangote Refinery, the Nigerian government on 11 March said the policy framework enabling the sale of crude oil in naira for domestic refining remains in force.

On 19 March, the Dangote refinery announced the temporary suspension of sales of petroleum products in Naira.

The refinery said the decision is necessary to avoid a mismatch between its sales proceeds and its crude oil purchase obligations, which are currently denominated in dollars.