The Federal Government Committee overseeing the sale of crude oil in naira to local refineries is set to deliberate today in Abuja on the policy’s future. The meeting aims to address growing concerns, including crude availability and commitments to international creditors.
Tensions between the NNPCL and Dangote Refinery have escalated as the refinery, citing inadequate crude supply in naira, has threatened to shift to dollar-based sales. While earlier reports suggested that the naira-for-crude policy would end by March, committee member Zack Adedeji has assured that the arrangement will last beyond six months.
The meeting, chaired by Finance Minister Wale Edun, will explore regulatory options proposed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to sustain the deal. One of the main challenges is NNPCL’s pre-existing agreements that have committed a significant portion of Nigeria’s crude output to creditors, creating difficulties in supplying domestic refineries.
A crucial issue under discussion is Nigeria’s OPEC production quota. NNPCL faces pressure to boost local crude supply but is cautious about exceeding OPEC limits to avoid diplomatic and economic repercussions. The government aims to balance fulfilling contractual obligations, ensuring crude supply for local refiners, and maintaining Nigeria’s OPEC standing.
Dangote Refinery’s recent decision to halt petroleum product sales in naira has heightened concerns about market stability, foreign exchange liquidity, and investor confidence in Nigeria’s oil and gas sector. The committee’s outcome could significantly impact fuel supply and economic policy.
Source: thenationonlineng.net
