Oil marketers and domestic refiners in Nigeria have urged the Federal Government to provide more information on the naira-for-crude deal, which officially began on October 1, 2024.
The Federal Ministry of Finance announced the start of the initiative on Saturday but did not release specific details about the agreements and pricing.
In a post on its social media platform, the Ministry stated, “The Minister of Finance and Coordinating Minister of the Economy announced that, in line with the Federal Executive Council directive, the sale of crude oil and refined petroleum products in naira has officially commenced as of October 1, 2024.” However, key aspects of the contract and pricing were not disclosed.
The Petroleum Retail Outlet Owners Association of Nigeria and the Crude Oil Refinery Owners Association of Nigeria welcomed the move but called for transparency. PETROAN President, Billy Gillis-Harry, expressed optimism but asked the government to reveal the details, particularly on pricing, to address concerns about a possible rise in fuel prices.
“We are happy that the government is implementing the policy we advocated for, which allows crude oil to be sold to Nigerian refineries in naira,” Gillis-Harry said. “However, we need to see the full details of this agreement, especially regarding the pricing, because it affects everything in the economy.”
Similarly, CORAN’s Publicity Secretary, Eche Idoko, applauded the government’s decision but mentioned that further information was necessary. “It is a welcome development for domestic crude refining, and we commend the government for this. But as of now, I don’t have all the details,” he said.
The government had earlier explained that this naira-for-crude initiative would help reduce pressure on the naira, lower transaction costs, and improve petroleum product availability. It also confirmed that NNPC would supply about 385,000 barrels of crude oil per day to the Dangote Refinery, with payments made in naira.
Despite the government’s announcement, officials at Dangote Refinery and other involved agencies have remained silent on whether the deal has indeed commenced. Many stakeholders, including oil marketers, await further clarification on the agreement’s specifics to ensure smooth implementation and avoid disruptions in the market.
The government has reassured Nigerians that the deal is expected to stabilize the economy and make petroleum products more accessible across the country.
