Revealed: Why naira-for-crude sale arrangement may continue

• The committee overseeing the naira-for-crude woody reportedly convened successful Abuja connected Monday, 24 March 2025, to proceed negotiations.
• Additionally, the committee assessed the challenges faced by the NNPC successful supplying crude lipid to home refineries.
• Sources bespeak that NNPC is facing difficulties with crude oil, arsenic it has committed its banal to a guardant merchantability statement with planetary creditors.

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

The hold of the merchantability of crude successful naira to home refineries formed the large discussions astatine the gathering of the Federal Government Committee successful Abuja connected Monday, March 24, 2025.

The challenges facing the argumentation person acceptable the Nigerian National Petroleum Company Limited (NNPC) against the Dangote Refinery, prompting the gathering of the committee supervising the initiative.

NNPC is reportedly facing crude proviso challenges arsenic it fails to proviso Dangote and different refineries. Credit: Bloomberg/Contributor
Source: UGC

Petrol prices emergence arsenic woody collapses

The refineries, NNPC and the national authorities volition clasp talks to find retired ways to prolong the naira-for-crude inaugural amid concerns astir crude availability.

Legit.ng earlier reported that the Dangote Refinery suspended the merchantability of petroleum products to marketers successful naira arsenic it failed to unafraid a committedness from NNPC for the continuation of the naira-for-crude deal.

The refinery disclosed that the crushed for the merchantability of petroleum products successful overseas currency is to debar a forex mismatch.

The improvement has led to a spike successful the prices of petroleum products, particularly petrol.

Private depot owners reportedly hiked their prices from N860 per litre to N870 owed to the deal’s collapse.

NNPC is facing crude lipid challenges

Meanwhile, reports by The Nation said the Committee is expected to measure options presented by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to halt the woody from full illness and let home refineries to acquisition crude lipid successful naira.

The study quoted sources arsenic saying that the upstream regulator was tasked to make strategies to code the increasing challenges facing the deal.

The committee volition reportedly sermon the challenges of NNPC, which has committed an tremendous crude magnitude to its guardant merchantability arrangement.

The improvement has created hiccups successful the lipid manufacture arsenic the authorities lipid institution struggles to reconcile its obligations to creditors with its committedness nether the collapsed naira-for-crude deal.

Investigations amusement that NNPC’s inability to conscionable its crude proviso obligations to home refineries was owed to pre-existing deals it pledged to creditors.

NNPC is nether unit to perform

Per the report, the nationalist lipid institution is nether unit to ramp up crude accumulation to conscionable home demands. 

It besides said NNPC is reluctant not to breach the OPEC quota, thereby creating diplomatic and marketplace tensions. 

A erstwhile study by Legit.ng said that Nigeria whitethorn pull OPEC’s wrath arsenic it moves to boost crude accumulation to implicit 2 cardinal barrels daily.

NNPC Group Chief Executive Officer, Mele Kyari, to mediate talks with Dangote Refinery. Credit: NNPC
Source: Facebook

Experts person warned that the inability to resoluteness the deadlock successful the woody could erode the gains accrued truthful far, specified arsenic the clang successful the prices of petroleum products since January 2025.

Marketers endanger to merchantability Fuel successful dollars

Legit.ng earlier reported that petroleum lipid marketers person adjusted their pump prices amid ongoing disagreement betwixt the Nigerian National Petroleum Company Limited (NNPC) and the Dangote Refinery implicit the merchantability of crude successful naira.

Legit.ng reported that the terms adjustments came arsenic backstage depot owners accrued their prices from N850 per litre to N878.

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to statesman the merchantability of petrol successful dollars if the Dangote Refinery starts selling its products successful overseas currency.

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Source: Legit.ng