Naira-for-crude Deal Will Continue, FG Assures

The Federal Government of Nigeria has reassured that the sales of crude oil in Naira initiative will continue, and there will be no disruption in the supply of refined petroleum products across the country.

The Federal Government reaffirmed its commitment to ensuring energy security, protecting consumers, and maintaining stability in the domestic petroleum products market.

The government gave the assurance at a meeting of the Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative held on Sunday, 28 September.

The meeting, chaired by the Minister of Finance and the Coordinating Minister of the Economy, Mr. Wale Edun, came on the heels of the recent announcement of suspension of the Naira-for-crude oil arrangement by the Dangote Refinery, which has been resolved.

A statement by Mohammed Manga, Director, Information and Public Relations, said the committee reviewed developments in the downstream oil sector during the meeting.

The committee also looked into concerns raised by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) regarding the Dangote Refinery.

The meeting had in attendance the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, the Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, who also chairs the Technical Committee, the representatives of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPCL), Central Bank of Nigeria (CBN), Afreximbank, and the Dangote Refinery.

The Dangote Refinery had on Friday, announced its plans to suspend the sale of refined petroleum products in naira, citing exhaustion of Naira-denominated crude. It later announced on Sunday, 27 September that the plan had been aborted following the intervention of the Federal Government.

The Naira-for-crude initiative, which was birthed last year by the Federal Government, aimed at reducing pressure on foreign exchange and making the products cheaper across the country.

“For the avoidance of doubt, the committee reassured that the crude oil for the Naira initiative will continue.

“It also assured that all outstanding issues, particularly the dispute between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery, are being addressed with urgency and in good faith,” the statement added.

The announcement of suspension of sales of petroleum products in naira by Dangote Refinery had sparked fears of fuel price surge.

Rescinding the decision after the Federal Government intervened, has brought temporal relief to Nigerians.

However, the ongoing nationwide strike by PENGASSAN has raised another fear of fuel crisis across the country as the union directed members to halt supply of crude oil and gas to the Dangote Refinery, which is currently the major domestic product of petroleum products.

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Victor EZEJA

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Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X