The Naira for Crude contract re-negotiation between NNPCL’s panel and Dangote Refinery is scheduled to hold on Monday
Following the recent announcement by Dangote Refinery about its temporary stoppage of selling petroleum products in Naira due to the end of the Naira for crude deal with the Federal Government.
Several speculations have been that the panel overseeing the Naira for crude contract and policies will meet on Monday with Dangote Refinery to discuss re-negotiating the contract further.
This was disclosed on Thursday by an anonymous yet reliable source from the Ministry of Petroleum Resources and Finance.
Apparently, NNPCL is facing a crisis of crude oil availability since it has mortgaged its future crude to foreigners through crude-backed loans.
The anonymous source said, “The scheme won’t end. The challenging point is the issue of crude availability, with NNPC claiming it has pre-sold large volumes of crude.
“The committee agreed to reconvene on Monday (next week) to review options that the Nigeria Upstream Petroleum Regulatory Commission has been mandated to come up with. The committee is trying to dimension solution options.”
In response to the development, Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), said, “The market is making preparations for any surprises. So, if there are surprises, we’ll have alternatives to go to.”
Hammed Fashola, the president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said, “I would like to advise the FG to look into the agreement with Dangote again to maintain the tempo of the prices of petroleum products.”
Should the contract negotiation between NNPCL and Dangote Refinery fall apart, recall that Dangote has secured a new crude oil deal from Equatorial Guinea, which also joins Algeria as African suppliers of petroleum products to Dangote Refinery.
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