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Petrol Price Hike Looms As NNPC Halts Naira-For-Crude Deal With Local Refineries — Sources

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1 week ago

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The Nigeria National Petroleum Company (NNPC) Limited has ended the naira-for-crude deal with Dangote Petroleum Refinery and other local refineries.

This is according to a report by The Cable.

This move could result in a rise in the petrol pump price, as local refineries, including Dangote, will now need to rely on international suppliers for feedstock, incurring significant costs in dollars.

According to reports, the NNPC informed the refineries that it has forward-sold all its crude, although current production is reportedly higher than when the deal started.

Nigeria began selling crude oil and refined petroleum products in naira to local refineries on October 1, 2024.

The intention was to enhance supply, save the country millions of dollars in importing petroleum products, and ultimately reduce pump prices.

However, multiple sources have indicated that the initiative will be put on hold until 2030.

A senior source confirmed that the NNPC informed Dangote Petroleum Refinery and other local refiners that it will no longer provide them with crude oil, as it has forward-sold all of its crude supplies until 2030.

Despite efforts to boost domestic refining capacity, the country has spent “over $4.3 billion importing 6.38 billion litres of premium motor spirit (petrol) and automotive gas oil (diesel) in just five months”, according to industry sources.

The NNPC is one of the entities still importing products, a situation supported by the recent deregulation of the downstream sector.

Another source stated that at a time when Nigerians were hoping for further price reductions, “the NNPC unilaterally decided to end the naira-for-crude initiative.”

TheCable has reached out to the NNPC for a response.

While the Dangote refinery declined to comment on the NNPC’s recent decision, an official mentioned that the company will carefully evaluate its options and determine the best course of action.

The halt in the naira-based crude supply could cause volatility in the foreign exchange (FX) market, potentially reversing recent gains, according to market analysts.

THE TROUBLED CRUDE-FOR-NAIRA DEAL

In October 2024, the federal executive council (FEC) approved the allocation of 450,000 barrels of crude for domestic consumption to be sold in naira to Nigerian refineries, with the Dangote refinery serving as a pilot project.

Under the agreement, the NNPC was expected to provide 385,000 barrels per day of crude oil to the Lekki-based refinery.

However, the national oil company has been criticized for consistently failing to meet its allocation.

In November 2024, the refinery reported that the crude-for-naira initiative was struggling, as it had not been able to secure enough supplies.

“We need 650,000 barrels per day, (state oil firm NNPC Ltd) agreed to give a minimum of 385,000 bpd but they are not even delivering that,” said Edwin Devakumar, the vice-president of Dangote Industries Limited (DIL).

He further called the NNPC’s supply “peanuts”

 

Credit: The Cable

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BIG STORY

BREAKING: Nigeria’s Inflation Rate Drops To 23.18%

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3 hours ago

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March 17, 2025

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The National Bureau of Statistics (NBS) has reported a decrease in Nigeria’s inflation rate, which fell to 23.18% in February from 24.48% in January.

The announcement was made in the February 2025 Consumer Price Index (CPI) released by the NBS on Monday.

According to the bureau, the headline inflation rate in February increased slightly by “1.30% points when compared to the January 2025 headline inflation rate.”

The NBS stated:

“In February 2025, the Headline inflation rate eased to 23.18% relative to the January 2025 headline inflation rate of 24.48%.”

“Looking at the movement, the February 2025 Headline inflation rate showed a decrease of 1.30% compared to the January 2025 Headline inflation rate.”

On a year-on-year basis, the headline inflation rate was 8.52% lower than the 31.70% recorded in February 2024.

The NBS further noted:

“This shows that the Headline inflation rate (year-on-year basis) decreased in February 2025 compared to the same month in the preceding year (i.e., February 2024), though with a different base year, November 2009 = 100.”

Additionally, the month-on-month inflation rate for February 2025 was recorded at 2.04%.

 

More to come…

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BIG STORY

Rivers Assembly Accuses Fubara, Deputy Of Misconduct, Issues Notice

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7 hours ago

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March 17, 2025

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The Rivers State House of Assembly has issued a notice accusing Governor Siminalayi Fubara and his deputy, Ngozi Odu, of alleged misconduct.

A total of twenty-six members of the assembly made these allegations against Fubara in a notice submitted to Speaker Martin Amaewhule on Monday.

According to the lawmakers, their actions are based on “Section 188 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and other existing laws.”

They accused Fubara of various offenses, including unconstitutional and reckless spending of public funds, hindering the Assembly’s activities, and appointing individuals to government positions without undergoing the required screening and confirmation.

Additional allegations include withholding salaries, allowances, and funds designated for the Rivers State House of Assembly, as well as blocking the salary of Clerk Emeka Amadi.

The lawmakers also accused Deputy Governor Ngozi Odu of “conniving and supporting the illegal appointment of persons to government positions without the required screening and confirmation.”

After receiving the notice, Amaewhule forwarded it to Fubara, stating that the allegations had been brought forward by “not less than one-third (1/3) of the membership of the Rivers State House of Assembly.”

He then urged the governor to respond to the allegations, citing Section 188(3) of the Constitution, which states, “Within 14 days of the presentation of the notice to the Speaker of the House of Assembly (whether or not any statement made by the holder of the office in reply to the allegation contained in the notice), the House of Assembly shall resolve by motion, without any debate, whether or not the allegation shall be investigated.”

Amaewhule further advised the governor to take appropriate action and extended his “esteemed regards.”

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BIG STORY

BREAKING: Lagos Court Orders Oba Otudeko To Appear For ‘N30bn Fraud’ Trial

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9 hours ago

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March 17, 2025

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The Federal High Court in Lagos has instructed Oba Otudeko to appear before the court and enter a plea in response to the charges filed by the Economic and Financial Crimes Commission (EFCC).

The directive was issued on Monday by Justice Chukwujekwu Aneke.

The EFCC had previously filed a 13-count charge against Otudeko and three others over an alleged N30 billion loan fraud.

During the proceedings, the judge ruled that Otudeko must take his plea before the court could address an application contesting its jurisdiction in the matter.

The case has been adjourned to May 8.

 

More to come…

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