NNPC Discontinues Naira-for-Crude Deal With Dangote Refinery, Others

The agreement, approved by President Bola Tinubu, officially commenced on October 1, 2024, after Mr Aliko Dangote expressed frustration at efforts to starve him of crude oil.

He had claimed that the NNPC was requesting to sell the commodity, which Nigeria has in abundance, in foreign currencies, especially in USD (Dollar).

Mr Tinubu later intervened, directing the NNPC to sell crude oil to him and other local refiners in the country’s currency, the Naira.

In the past few weeks, Dangote Refinery and the NNPC have engaged in a silent price war as regards the pump price of Premium Motor Spirit (PMS), otherwise known as petrol.

The private refiner has slashed its ex-depot price to N825, with its retail partners selling to customers at N860 per litre.

The state-owned oil agency, the NNPC, has been forced to bring down the price of the product at its retail stations at N860 per litre to remain in business.

In its report, it was stated that the NNPC has informed domestic refiners that it has forward-sold all its crude until 2030 despite witnessing improvement in output.

It was disclosed that the NNPC and Dangote Refinery declined to comment on this development when contacted.

It is believed that the purported suspension of the Naira-for-crude deal could lead to a hike in petrol price in the country in the coming weeks.