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Naira-For-Crude: Marketers Fear Price Hike As FG Suspends Sale To Dangote

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Following the Dangote Petroleum Refinery’s suspension of petroleum product sales in naira, some filling stations have begun stockpiling Premium Motor Spirit, also known as petrol.

Retailers are accumulating fuel in anticipation of a price increase due to the Federal Government’s decision to halt crude oil sales to the Dangote refinery in local currency.

However, the Independent Petroleum Marketers Association of Nigeria has cautioned against panic buying, warning that marketers could suffer losses.

Last week, the Dangote refinery announced a temporary suspension of naira sales, citing a disparity between its sales revenue and crude oil purchase obligations, which are currently denominated in US dollars.

“Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.

“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency,” the refinery stated.

Following the announcement, the cost of loading petrol at private depots in Lagos surged to approximately N900 per litre, up from less than N850 per litre.

The National Publicity Secretary of IPMAN, Chinedu Ukadike, accused depot owners of exploiting the situation for profit, as some filling stations were rushing to stockpile fuel.

“Some depot owners are already increasing the price. But we are also asking our marketers not to panic-buy. Because definitely when the Dangote refinery comes back and reverses the price, it will be a huge loss for these marketers. Depot owners are using this opportunity to profiteer. This is not good for the economy,” Ukadike stated.

He warned marketers against purchasing excessive quantities of petrol to avoid financial losses if the Dangote refinery later reduces prices.

“We, the independent marketers, are asking our members not to buy so much goods because when they buy so much volume of fuel at a higher rate from the depot owners, at the end of the day, it might result in losing a lot of capital.

“Dangote may crash the price, and most of them with high volumes of PMS will run into problems. So, all marketers should be careful to avoid losses,”** he advised.

According to Ukadike, discussions between the Federal Government and the Dangote refinery are ongoing to resolve the situation and restore the naira-for-crude agreement.

“I have gathered that the Federal Government and Dangote refinery are almost resolving this matter.

“The two of them are reviewing the naira-for-crude deal to continue the sale of crude oil in naira to the refinery again. But the official statement has not come out. We are waiting for the official statement,” Ukadike revealed.

Sources from the Federal Ministry of Finance and the Federal Ministry of Petroleum Resources confirmed that the Technical Sub-Committee on the Naira-for-Crude Policy would reconvene on Monday to deliberate on the issue.

The committee has reportedly instructed the Nigerian Upstream Petroleum Regulatory Commission to propose solutions for reinstating the naira-for-crude arrangement.

Industry analysts and oil marketers warned that the suspension of naira sales by the Dangote refinery could increase demand for foreign exchange, as marketers will need to obtain US dollars to purchase fuel.

Multiple sources linked the issue to the Nigerian National Petroleum Company Limited’s large-scale forward sale of crude oil, which was reportedly used to secure international loans.

Meanwhile, NNPC spokesperson Olufemi Soneye confirmed that fresh negotiations with the Dangote refinery had commenced, as the initial phase of the naira-for-crude agreement, which began in October 2024, is set to conclude this month.

Soneye disclosed that 48 million barrels of crude have been supplied to the Dangote refinery since October.

With the suspension of naira sales, marketers will now need to acquire US dollars to purchase petrol from the refinery.

The National Vice President of IPMAN, Hammed Fashola, cautioned that this could destabilize the naira, which had recently shown signs of stability.

Experts noted that the naira-for-crude agreement had previously enabled the Dangote refinery to lower PMS prices, forcing NNPC to do the same despite potential losses.

The move reportedly resulted in significant financial setbacks for fuel importers, who struggled to compete with the $20 billion refinery’s pricing.

Some industry insiders believe the suspension of the naira-for-crude deal may be an attempt to curb the growing influence of the Dangote refinery, as some downstream players have accused it of monopolistic tendencies.

Domestic crude oil refiners expressed concerns that discontinuing crude supply in naira could undermine Nigeria’s energy security goals.

The National Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, Eche Idoko, criticized the decision, stating that it contradicts efforts to achieve energy independence.

Meanwhile, earlier reports had it that seven vessels carrying imported Premium Motor Spirit were expected to arrive at Nigerian seaports between March 17 and 23, delivering 154.22 million litres of petrol.

Additionally, a document from the Nigerian Port Authority revealed that the Dangote refinery imported 654,766 metric tonnes of crude oil during the same period.

The refinery, located in Lekki, Lagos State, has faced crude supply challenges since its inception.

The Dangote Group previously alleged that some International Oil Companies were attempting to sabotage its operations by refusing to supply crude oil directly to the refinery, instead selling through foreign intermediaries at inflated prices.

The refinery also accused IOCs of prioritizing crude exports to Asian markets over supplying local refineries.

In response to these concerns, President Bola Tinubu proposed selling crude to local refineries in naira, a policy approved by the Federal Executive Council in July 2024.

Under this policy, 450,000 barrels of crude designated for domestic consumption were to be sold to Nigerian refineries in naira, with the Dangote refinery serving as a pilot program.

However, with the recent suspension of the naira-for-crude agreement, the future of this initiative remains uncertain.

 

Credit: The Punch

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BREAKING: President Tinubu Renames University Of Maiduguri After Buhari

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President Bola Tinubu has given approval to rename the University of Maiduguri in Borno State as Muhammadu Buhari University.

May we now adopt the University of the Maduguri as the Muhammadu Buhari University, Tinubu announced at the end of a special Federal Executive Council session held to honour Buhari at the Aso Rock Villa, Abuja, on Thursday.

Earlier, the President offered a heartfelt tribute to Buhari, portraying him as a good man, a decent man, an honourable man, whose legacy of discipline, patriotism, and strong moral values would be remembered for generations.

Tinubu acknowledged that although Buhari had imperfections, his steadfast dedication to serving the nation distinguished him.

President Buhari was not a perfect man, no leader is, but he was, in every sense of the word, a good man, a decent man, an honourable man.

His record will be debated, as all legacies are, but the character he brought to public life, the moral force he carried, the incorruptible standard he represented, will not be forgotten.

His was a life lived in full service to Nigeria, and in fidelity to God, he added.

Looking back at Buhari’s leadership and long career in both military and civil service, Tinubu highlighted his humility, modesty, and resistance to the temptations of power.

He stood, always, ramrod straight; unmoved by the temptation of power, unseduced by applause and unafraid of the loneliness that often visits those who do what is right, rather than what is popular.

His was a quiet courage, a righteousness that never announced itself. His patriotism was lived more in action than in words.

Tinubu also reflected on their political partnership, which led to the historic 2015 elections, marking Nigeria’s first peaceful transition of power between political parties.

We stood together, he and I. Alongside others drawn from across the political spectrum, regions and tongues, we formed an alliance that enabled Nigeria to experience its first true democratic transfer of power from one ruling party to another.

When he was sworn in as our party’s first elected President, he led with restraint, governed with dignity, and bore the burdens of leadership without complaint, he said.

The President admired Buhari’s life after leaving office, saying he chose to live quietly in Daura rather than influence politics from behind the scenes.

When his tenure ended, he returned to Daura; not to command from the shadows or to hold court, but to live as he always had, never seeking to impose his will but content to let others carry the nation forward.

Even in death, he maintained the serenity that defined him in life: not a sigh, not a groan, just a quiet submission to the will of God. Such was the man Nigeria has lost. Such was the man for whom our nation now mourns, he added.

Tinubu expressed gratitude to the Inter-Ministerial Committee and Katsina State Governor, Dikko Radda, for putting together a state funeral in less than 48 hours, calling it a profound honour to lead the burial ceremony in Daura.

He ended his tribute with a final message: Mai Gaskiya, the People’s General, the Farmer President, your duty is done. May Almighty Allah forgive his shortcomings and grant him Aljannah Firdaus. May his life continue to inspire generations of Nigerians to serve with courage, conviction, and selflessness. President Buhari, thank you. Nigeria will remember you.

Buhari passed away on Sunday, July 13, at the age of 82.

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CPC Bloc And Buharists Reaffirm Commitment To APC And President Tinubu, Call For Party Chairmanship

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In a live interview earlier today on AIT, political analyst and committed Buharist Chief Okoi Obono-Obla —former member of the National Executive Committee and Secretary of the defunct CPC Merger Committee—addressed recent speculation regarding the Congress for Progressive Change (CPC) bloc and Buharists within the All Progressives Congress (APC), following the transition of former President Muhammadu Buhari.

Responding to reports that certain former government officials are considering a move to the African Democratic Congress (ADC) or aligning with a so-called coalition, Okoi stated firmly:

“These individuals do not represent the leadership or the collective will of the CPC bloc. As a Buharist and one who participated in the foundational merger, I can confirm that the CPC bloc remains solidly within the APC and stands fully behind President Bola Ahmed Tinubu.”

He emphasized that suggestions to defect run contrary to President Muhammadu Buhari’s legacy and enduring support for the APC:

“If those advocating a move to the ADC were genuine followers of President Buhari, they would respect his clear position. Our leader has declared he remains a member of the APC and deeply appreciates the platform the party provided for his presidency from 2015 to 2023.”

Okoi also conveyed a strong demand from the CPC bloc regarding the future leadership of the APC:

> “The CPC bloc is earnestly calling for the position of the next APC National Chairman to be conceded to our bloc. We are united in our clamour for Senator Tanko Umaru Al-Makura—our respected leader and a committed party stalwart—to assume this vital role.”

This reaffirmation not only signals loyalty to President Tinubu and the APC, but also outlines the CPC bloc’s expectations for inclusive party leadership, rooted in shared history and trust.

 

@ Okoi Obono-Obla#

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NELFUND To Launch Job Portal Linking Student Loan Beneficiaries To Employers By 2026

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The Nigerian Education Loan Fund (NELFUND) has revealed plans to introduce a centralized job portal by 2026 aimed at helping student loan recipients secure employment opportunities both locally and abroad.

This initiative forms part of broader strategies to strengthen the effectiveness of the student loan program and guide graduates toward financial stability.

While speaking at a media briefing in Abuja to commemorate one year since the loan scheme’s inception, NELFUND’s Managing Director, Akintunde Sawyerr, clarified that although the agency does not promise jobs, the planned job portal is intended to ease graduates’ entry into the workforce.

Sawyerr mentioned that the portal will compile job listings from government bodies, private companies, and foreign employers interested in hiring Nigerians.

We don’t just give a loan and leave students on their own. This job portal is our way of supporting their journey towards economic stability, he said

No repayment without employment

Sawyerr reaffirmed that repayment of student loans will only begin when beneficiaries secure employment and have completed their National Youth Service Corps (NYSC).

If you don’t have a job, you don’t pay. And when you eventually get a job, your repayment starts fresh.

Once employed, 10 per cent of the beneficiary’s monthly income is deducted automatically by the employer and remitted to NELFUND, following verification through the NELFUND employment register.

If an employee is laid off or resigns, the deductions stop. And in the event of death, the loan is written off. The family is not harassed, he said.

Institutions must refund duplicate payments

On the matter of students who made fee payments before NELFUND disbursed funds to their schools, Sawyerr urged institutions to fulfill their obligation and refund the affected students.

We’ve received multiple petitions from students who paid under duress, only to find their fees had also been paid by NELFUND.

Institutions must refund this money. It’s disappointing that some schools have ignored this responsibility, he said.

He further explained that anti-graft agencies have begun investigating: Investigative bodies like the ICPC and EFCC have stepped in to question certain institutions over delays or refusals to refund.

To ensure the right return of funds, he recommended: If an institution cannot refund directly to the student, they can pay the money back to us and we will ensure it gets to the rightful student.

Over 3.2 million student records in system

Mustapha Iyal, the Executive Director of Operations, shared that the Fund currently oversees over 3.2 million student records and anticipates receiving around one million additional applications by the end of 2025.

Basically, our projection right now, we have about 3.2 million students in our system.

What we’re looking at this year, from now to the end of the year, we’re looking at about one million applications. We’re not pushing. We’re not saying that it’s compulsory.

But we’re looking at how we can support one million applications to make sure that no one is dropping out of school, he stated.

What you should know

NELFUND has broadened its scope by launching a loan program that also funds vocational and technical education to empower Nigerian youth seeking practical trade skills. The pilot phase of this scheme will start in Enugu between late June and mid-July 2025.

According to Executive Director of Operations, Iyal Mustapha, the initiative will offer interest-free loans to cover tuition, transportation for attending full-time technical schools, stipends for living expenses, and even tools upon training completion.

Applications will be submitted via NELFUND’s portal, and once the system is active, applicants will be matched with certified vocational training centers in their region.

 

Credit: Nairametrics

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