The Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency, Zacch Adedeji, has confirmed the supply of crude in Naira by the Nigerian National Petroleum Company Limited (NNPCL) to the Dangote Petroleum Refinery will begin on Tuesday, October 1, 2024, as planned.
Recall, on September 13, 2024, the committee announced that the Federal Executive Council under the leadership of President Bola Tinubu approved the sale of crude to local refineries in naira and the corresponding purchase of petroleum products in naira.
“From October 1, NNPC will commence the supply of about 385kbpd (385,000 barrels per day) of crude oil to the Dangote refinery to be paid for in naira,” the committee had declared.
The Special Adviser on Media to Zacch Adedeji, Mr. Dare Adekanmbi, confirmed the agreement on Sunday, September 29 saying “I can confirm to you that the Chairman, Sub-Technical Committee, Zacch Adedeji, is working day and night to ensure that things go according to plans. He knows how important it is to have the agreement implemented as has been planned for the benefit of Nigerians.”
This implies that NNPC is to supply about 11.5 million barrels of crude oil to the Dantote refinery monthly, and based on the deal, the plant will release equivalent volumes of refined diesel and petrol to the domestic market also in naira.
The panel explained in September that this initiative would help reduce pressure on the naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products across the country.
“Since then, the implementation committee chaired by the Minister of Finance and we, the technical committee, have worked intensely with NNPC and Dangote refinery to fashion out the details of the modalities for the implementation of the FEC approval,” Adedeji had stated.
While stating that crude would be sold to Dangote in naira from October 1, the committee chairman and FIRS boss said, “In return, the Dangote refinery will supply PMS (petrol) and diesel of equivalent value to the domestic market to be paid in naira.
“Diesel will be sold in naira by the Dangote refinery to any interested off-taker. PMS will only be sold to NNPC. NNPC will then sell to various marketers for now. All associated regulatory costs (NPA, NIMASA, etc.) will also be paid in naira. We are also setting up a one-stop shop that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative.”
The Chairman of the Dangote Group, Aliko Dangote, also appeared to confirm the sale in an interview last week when he said Dangote stated, “We are working towards a robust agreement with the Federal Government that guarantees energy security for the country. This means no more fuel queues.”
“The government has committed to providing us with crude oil, and in October, they will deliver 12 million barrels, equivalent to around 390,000 barrels per day. We will refine this crude to produce gasoline, diesel, and aviation fuel for the local market, with any surplus being exported.”