NNPC insists it supplied all crude cargoes for naira-for-crude deal to Dangote refinery
By Aboki Forex —
The Nigerian National Petroleum Company Limited has insisted that it supplied all available crude oil cargoes allocated under the Federal Government’s naira-for-crude initiative to the Dangote Petroleum Refinery, saying there had been no withholding on its part. The national oil company stated this even as a top management official of the Dangote Group disclosed exclusively to The PUNCH that the refinery was receiving just four million barrels of crude oil monthly under the arrangement, instead of about 13 million barrels envisaged after President Bola Tinubu’s 2024 directive.
Dangote says crude supply falls far short of target
The refinery had attributed its decision to switch from naira-denominated fuel sales to dollar transactions to the crude supply shortfall. It also said it would increase exports of refined petroleum products to earn foreign exchange. According to the Dangote Group, the crude volumes supplied under the arrangement were inadequate to sustain naira-denominated fuel sales.
NNPC responds: obligations fully met
Responding on Monday, the NNPC, through its spokesman, Andy Odeh, said the company had fully discharged its obligations under the naira-for-crude policy. “As a 7.25 per cent equity shareholder in Dangote Petroleum Refinery and Petrochemicals, NNPC Limited has a direct and genuine interest in seeing the refinery operate at full capacity. That is not in dispute,” Odeh stated.
The dispute highlights the gap between what the government ordered and what the national oil company says it can deliver. Under the naira-for-crude arrangement, the Dangote refinery was expected to receive about 13 million barrels monthly, but the company says it is getting only four million barrels.
What this means for the naira and consumers
The shortfall in crude supply under the naira-for-crude deal has direct implications for the naira and Nigerian consumers. If the refinery cannot secure enough crude in naira, it will continue to sell fuel in dollars, putting pressure on the foreign exchange market. That could mean higher pump prices for Nigerians, as the refinery passes on dollar-denominated costs. The standoff also threatens the government’s goal of reducing fuel import bills and stabilising the naira through local refining.