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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

BIG STORY

Akpabio Appeals Judgement On Natasha Akpoti’s Suspension

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Senate President Godswill Akpabio has submitted an appeal in an effort to reverse a federal high court ruling that instructed the senate to lift the suspension placed on Natasha Akpoti-Uduaghan, the senator representing Kogi Central.

The appeal, dated July 14, 2025, was lodged at the Abuja division of the court of appeal.

Akpabio is contesting the July 4 decision issued by Binta Nyako, which labelled Akpoti-Uduaghan’s six-month suspension as overreaching and a violation of her constituents’ rights to representation.

Although the court recognized the senate’s constitutional power to discipline its members, Nyako determined that the duration and severity of Akpoti-Uduaghan’s suspension were excessive. Additionally, the court imposed a ₦5 million fine on the senator for contempt, pointing to a satirical Facebook post made during the trial that allegedly violated an existing restraining order.

In reaction, Akpoti-Uduaghan has lodged her own appeal, disputing the contempt ruling on the basis of jurisdiction. She claimed the court lacked authority to rule on a contempt matter involving actions that took place ex facie curiae — outside the courtroom.

Akpabio’s legal representatives also submitted a cross-appeal, questioning the federal high court’s jurisdiction. They argued that the issue pertains to internal legislative matters, which they believe fall outside judicial oversight as stated in Section 251 of the 1999 Constitution.

In his appeal containing 11 grounds, Akpabio criticised the lower court for dismissing his initial objection and issuing decisions that he believes encroach upon the legislative independence granted by the Legislative Houses (Powers and Privileges) Act.

He argued that processes such as suspensions, statements made during plenary, and senate decisions should not be subject to court review. The appeal further stated that Akpoti-Uduaghan’s case was filed prematurely because she had not yet pursued resolution through the internal processes of the senate, especially through the committee on ethics, privileges, and public petitions, as outlined in the Senate Standing Orders (2023, as amended).

Akpabio also alleged that the trial judge denied him a fair hearing by introducing and deciding on matters such as the alleged excessiveness of the suspension without input from either party. He viewed this as a violation of the court’s impartial role.

Additionally, the appeal criticised the merging of interim reliefs with the main claims, which Akpabio’s legal team argued was a procedural error. They also maintained that the case should have been dismissed for not complying with Section 21 of the Legislative Houses Act, which requires a three-month notice to the clerk of the national assembly before initiating legal proceedings.

Akpabio is requesting that the appeal court accept his case, nullify the federal high court’s decision, and uphold the senate’s disciplinary action against Akpoti-Uduaghan.

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BIG STORY

Natasha Akpoti Fires Back At Akpabio Over Reinstatement Challenge

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Senator Natasha Akpoti-Uduaghan, who represents Kogi Central, has dismissed Senate President Godswill Akpabio’s appeal challenging the Federal High Court decision that reinstated her to the Senate.

Akpabio, through his lawyers, approached the Court of Appeal in Abuja to contest the July 4 verdict by Justice Binta Nyako, which overturned Akpoti-Uduaghan’s six-month suspension and labelled it as “excessive” and lacking legal justification.

The appeal, dated July 14 and registered as CA/A//2025, stemmed from suit FHC/ABJ/CS/384/2025, which Akpoti-Uduaghan filed to contest her suspension.

In his appeal, Akpabio urged the appellate court to nullify the ruling, arguing across 11 grounds that the trial court lacked the authority to interfere in what he described as internal National Assembly matters, which he claimed are not subject to judicial review based on Section 251 of the 1999 Constitution.

He also criticised the court for dismissing his preliminary objection and issuing directives that impacted parliamentary procedures. He insisted that decisions made during plenary, such as suspensions and resolutions, are protected by the Legislative Houses (Powers and Privileges) Act and should not be legally challenged.

According to Akpabio, Akpoti-Uduaghan filed her lawsuit prematurely without first exploring the Senate’s internal grievance process through the Committee on Ethics, Privileges, and Public Petitions, as required by the 2023 (amended) Senate Standing Orders.

He further claimed the trial court denied him a fair hearing by raising new issues — such as whether the suspension was excessive — without input from both parties and then ordering her reinstatement based on that.

Attempts to get an official reaction from Akpoti-Uduaghan were unsuccessful, as she did not respond to phone calls or messages.

When approached at the “Double Minority” documentary screening organised by Daria Media and the MacArthur Foundation, the senator declined to comment on whether she would return to her legislative duties.

When asked about Akpabio’s appeal, she reacted sharply and said, “Did you also ask him to tell you why he appealed it?” before leaving the venue.

It is worth recalling that on February 20, 2025, a dispute erupted between Natasha and Akpabio concerning seating arrangements in the Senate.

Following the incident, she accused him of sexual harassment, including offering favors in exchange for her cooperation on legislative matters.

The Senate’s Ethics Committee rejected her complaint on procedural grounds and suspended her for six months for “unruly behaviour,” denying her access to her office, salary, and security.

On July 4, 2025, Justice Nyako at the Federal High Court in Abuja overturned her six-month suspension, deeming it excessive, and directed the Senate to bring her back.

The court also imposed a N5 million fine on Akpoti-Uduaghan for contempt related to a social media post but emphasized that her constituents had been deprived of representation during her suspension.

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BIG STORY

Ogun State Workers Begin Strike Over N82bn Pension Deductions

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The organised labour groups in Ogun State — including the Nigeria Labour Congress, Trade Union Congress, and Joint Negotiating Council — on Monday instructed all state employees to embark on an indefinite strike.

This move follows the state’s failure to remit N82 billion in contributory pension deductions over a span of 14 years.

This directive was disclosed in a statement signed by leaders of the NLC, TUC, and JNC, and shared with The PUNCH on Monday.

The decision for industrial action was reportedly made during a statewide congress held the same day, where workers voted to indefinitely stop work in protest of the non-functional Ogun State Pension Reform Law 2008 and its 2013 amendment.

The 2013 amendment to the Pension Law established the Contributory Pension Scheme, which mandates that both employers and employees contribute a fixed monthly sum of 7.5 percent of the worker’s basic salary into a fund managed by licensed pension fund administrators.

According to the labour unions, in the 17 years since the law was enacted, there has been a consistent failure to implement it properly, often violating the provisions of the law.

The statement noted that “Accessible records on it established the incontrovertible fact that it has rather been a drain of resources for the workers, and curiously, a wage lowering tactic for successive governments of the state.”

It added that “Only 34 months (that is, three years less than two months) of the expected 204 months (17 years) of the deductions from both sides, i.e. the state/local governments were remitted to the PFAs.”

It also stated, “In the last 14 years, and still counting, monthly deductions only from workers’ salaries have been diligently consistent without remittance to their PFAs.”

“The statue-prescribed investments of the funds, the interests it could have yielded, amongst other associated benefits are all in limbo.”

“It simply translated to the apparent shortchanging of the entirety of active and dedicated workers of the state over the years.”

The unions mentioned the Adekunle Hassan Pension Reform Committee that was formed in 2022, stating that its report and recommendations were never made public.

They noted that no definitive steps had been taken to resolve the situation. Despite sending numerous letters to the authorities, the state government never responded.

Suffice that workers unanimously demanded for outright cancellation of the shortchanging scheme which, according to its amended version, comes into full effect on July 1, 2025.

The statement continued, “In clear terms, the indefinite suspension of services across the state and local governments takes full effect from midnight, Tuesday 15th July 2025.”

Earlier, about two weeks ago, the labour unions urged the state government to either delay the implementation of the CPS, initially scheduled for July 1, or revert to the old pension system.

They pointed out that the pension law, signed by former Governor Gbenga Daniel in 2008, was flawed from inception, as the administration failed to remit 25 months’ worth of deductions before exiting office in May 2011.

They added that Daniel’s successor, Senator Ibikunle Amosun, amended the law in 2013 with a plan to fully implement the CPS in July 2025, but only remitted nine months’ deductions throughout his eight-year tenure.

According to the labour leaders, Governor Dapo Abiodun, in his six years in office, has not remitted any contributions from workers into the scheme.

They expressed frustration that despite numerous letters and communications, the government has remained silent on the issue.

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