The much-anticipated Naira-for-Crude Policy, aimed at facilitating crude oil sales to local refineries in Nigerian currency, is shrouded in uncertainty following the federal government’s failure to release necessary implementation guidelines by the scheduled start date of October 1, 2024.
On September 13, 2024, the Technical Sub-Committee on Domestic Sales of Crude Oil announced that the Federal Executive Council, led by President Bola Tinubu, had approved this initiative to enhance domestic oil supply and reduce foreign exchange demand.
The policy was expected to enable the Nigerian National Petroleum Company Limited (NNPC) to supply approximately 385,000 barrels per day of crude oil to the Dangote refinery, with payments made in naira.
Despite expectations, as of the deadline, there was no confirmation from either the Dangote refinery or the NNPC regarding the policy’s commencement. Attempts by LEADERSHIP to reach NNPC spokesman Olufemi Soneye and Dangote refinery spokesman Anthony Chiejina for clarification went unanswered.
Zacch Adedeji, chairman of the Technical Subcommittee and the Federal Inland Revenue Service (FIRS), reaffirmed that the supply of crude to the Dangote refinery would begin as planned. “The supply will commence as scheduled,” Adedeji stated on Sunday, maintaining confidence in the initiative despite the absence of guidelines.
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The failure of the Port Harcourt refinery to participate in this phase has compounded frustrations regarding the democratization of Nigeria’s petrol supply, as it continues to face technical challenges. Stakeholders had anticipated that this initiative would improve transparency and stability in the local petroleum market.
Eche Idoko, publicity secretary of the Coalition of Refineries Associations of Nigeria (CORAN), emphasized that the federal government had committed to initially supplying crude oil only to Dangote refinery, which is currently the only operational refinery producing petrol.
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