The FG of Nigeria, through its technical subcommittee, has announced the continuation of the Naira for Crude with Dangote and other local refineries.
The Federal Government has just announced that the Naira for crude deal it has with Dangote Refinery and other refineries will continue to be in place, while the Nigerian National Petroleum Company Limited (NNPCL) will also continue to serve as its intermediary.
This was announced through the Technical Sub-Committee on the Naira for crude Initiative on Wednesday.
Through its statement, the technical subcommittee reaffirmed that “the naira for crude initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives.”
This comes after a stakeholder’s meeting on Tuesday, where the major topic discussed was the ongoing implementation plans.
The statement further reads, “The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council (FEC).
“Thus, the Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
The technical sub committee did not also turn its face away from the fact there will be challenges regarding the policy.
“As with any major policy shift, the technical sub Committee acknowledges that implementation challenges may arise from time to time.
“However, such issues are being actively addressed through coordinated efforts among all parties,” the statement said.
The meeting was attended by the Chairman of the Implementation Committee, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; the Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji; the Chief Financial Officer of NNPC Limited, Mr. Dapo Segun; the Coordinator of NNPC Refineries; management of NNPC Trading; as well as representatives of Dangote Petroleum Refinery and Petrochemicals.
Senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Ports Authority (NPA), a representative of Afreximbank, as well as the Secretary of the Committee, Hauwa Ibrahim, were equally in attendance.
With the ongoing trade war between China and the United States, there’s a huge wonder on how this will affect Nigeria as global oil prices crashed by 6% on Wednesday.
According to the Oil Price Website, it showed that WTI crude futures slumped by around $4.01, or 6.7 percent, to $56.06 per barrel, while Brent tumbled to $59.33 per barrel as of the time of filing this report.
Crude oil prices have never experienced this low decline since February 2021.
This is a result of the 104% tariffs placed by Donald Trump on China-made goods and the retaliation of 84% placed by China on American-made goods.
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