Local refinery owners confirm end of Naira-for-Crude initiative for local refineries  

The National Publicity Secretary of CORAN, Eche Idoko, in a chat with Naijaonpoint, explained that the first phase of the Naira-for-crude arrangement was meant to end in March and it has ended.

Idoko, however, clarified that contrary to speculations that the arrangement was terminated by the Nigeria National Petroleum Company Limited (NNPC), the first phase of the arrangement has ended.

He noted that the association is hoping for a renewal but has yet to hear from the federal government on that.

He said: “The Naira for Crude agreement was supposed to end in March as the first phase and it has ended and we are yet to get the government’s renewal.  

“So it was not as if the NNPC terminated it. The original agreement was that it was supposed to end, the pilot phase was supposed to end in March, and then after which they would assess it and see whether it was of any impact and then renew.  

“They have not communicated to us on that and so that’s where we are now.”

Last year, the Federal Executive Council (FEC) approved the Naira-for-Crude initiative in which local refineries will be supplied crude oil in Naira rather than dollars.

According to the federal government, during the approval of the initiative, local refineries would be allocated 450,000 barrels of crude oil per day with the Dangote refinery receiving 385,000 bpd (or 12 million barrels per month).

Local refiners said the inconsistency of the Naira-for-crude initiative disrupted crude supplies.