Amid concerns over crude oil availability for local refineries, particularly the Dangote Refinery, the Nigerian National Petroleum Company Limited (NNPCL) has supplied 84 million barrels of crude oil to the facility.

The national oil company, however, dismissed reports suggesting that it had halted the naira-for-crude arrangement.

Similarly, the Federal Inland Revenue Service (FIRS) reinforced the position, maintaining that the policy remains in force.

Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) lamented that fuel marketers suffered significant losses due to the recent price slash by NNPCL and Dangote. The association, therefore, called for a six-month price stability plan to mitigate further disruptions.

At full operational capacity of 650,000 barrels per day, the 84 million barrels supplied would sustain Dangote Refinery for approximately 130 days. However, with the facility averaging around 400,000 barrels per day, the current supply translates to about seven months of crude sufficiency.

Last October, the Federal Government initiated a six-month deal to supply crude oil to Dangote and other local refiners in naira, leveraging the federation’s share of oil production. The agreement, expected to expire this month, has been fraught with allegations that NNPCL had prematurely discontinued the arrangement.

Under the initial plan, NNPCL was to supply Dangote Refinery with 385,000 barrels per day starting October 1, 2024, with payments settled in naira. This would have amounted to 58 million barrels by the end of February. However, NNPCL disclosed that only 48 million barrels had been delivered since October, leaving a shortfall of 10 million barrels.

NNPCL sources, speaking on condition of anonymity, indicated that Dangote Refinery failed to meet its contractual obligations regarding the supply of agreed petroleum products.

Reacting to concerns over the continuity of the arrangement, Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, assured that negotiations were ongoing for a new contract, though he refrained from confirming whether future deals would also be settled in naira.

“NNPC remains committed to supplying crude oil for local refining under mutually agreed terms,” he stated.

Amid speculations of a policy reversal, the Chairman of the Technical Sub-Committee on the Naira-for-Crude Policy, Zacch Adedeji, who also serves as the Executive Chairman of FIRS, reaffirmed that the initiative remains active.

In a statement issued on Monday, Adedeji stressed that reports of its suspension were inaccurate.

“The policy framework enabling the sale of crude oil in naira for domestic refining remains in force. The initiative was designed to ensure supply stability and optimise the utilisation of local refining capacity. There has been no decision at the policy level to discontinue this approach, nor is it under consideration,” he said.

According to him, after months of implementation, there is ample evidence that the policy is beneficial to the economy and will be sustained.