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NEPZA, Dangote Refinery and Stakeholders Pledge Compliance with Presidential Directive on Crude Sales in Naira

Fola Badmus3 months ago3 months ago03 mins

The Nigeria Export Processing Zones Authority (NEPZA), the One-Stop-Shop Committee on the Sale of Crude in Naira, and Dangote Refinery & Petrochemicals Free Zone Enterprises have jointly committed to implementing the presidential directive aimed at reducing domestic petroleum product prices by eliminating dollar-based crude sales in local transactions. According to The Bureau Newspaper, the resolution was reached during a courtesy visit by members of the committee to NEPZA’s Managing Director, Dr. Olufemi Ogunyemi, in Abuja. All parties agreed to align operations with the directive, which is intended to strengthen energy security and stimulate economic growth. Dr. Ogunyemi expressed NEPZA’s full support for the policy, emphasizing the Authority’s supervisory role in the Dangote Refinery project from inception to commissioning. He noted that the refinery, operating under the Free Trade Zone Scheme, has received 480 vessels to date and has commenced full-scale production of petrol, diesel, aviation fuel, and other petroleum products for domestic and export markets. “The sale of crude in naira will eliminate the local currency’s vulnerability to dollar fluctuations,” Ogunyemi stated, describing the refinery as a “shining star” in advancing the new energy policy. Ms. Maureen Ogbonna, the committee’s coordinator, described the initiative as a strategic intervention by President Bola Tinubu to reposition Nigeria’s economy. “It is only a matter of time before we move fully away from billing domestic crude in dollars,” she said, adding that the policy is already producing results due to strong political will and stakeholder collaboration. Also speaking, Mr. Akinsanya Mobolarin, General Manager of Engineering and Strategic Services at Dangote Refinery, reiterated the company’s commitment to supporting national development. “The policy, when fully implemented, will drive substantial growth in Nigeria’s energy and industrial sectors,” he said. All stakeholders pledged to maintain synergy in executing the directive and achieving sustainable energy affordability for Nigerians.

NNPCL Earns ₦336bn from Crude Sales to Dangote, Foreign Buyers

Fola Badmus5 months ago5 months ago04 mins

The Nigerian National Petroleum Company Limited (NNPCL) generated ₦336.37 billion from crude oil sales in the first quarter of 2025, with Dangote Petroleum Refinery accounting for over 32 percent of the transactions. Internal documents submitted at the Federation Account Allocation Committee (FAAC) meetings and obtained by The PUNCH revealed that crude supplies to the refinery totaled ₦107.44 billion, with unit prices ranging from $74.87 to $80.34 per barrel. These transactions were settled in naira using exchange rates recommended by the African Export-Import Bank (Afreximbank), between ₦1,501.22/$ and ₦1,562.91/$. This naira-based crude supply arrangement is part of the Federal Government’s initiative to support local refining, conserve foreign exchange, and reduce fuel import dependency. Initially introduced in July 2024, the naira-for-crude policy directed NNPCL to sell crude oil to Dangote Refinery in naira for an initial six-month phase. While the refinery briefly suspended sales in naira in March 2025 due to currency mismatch concerns, the Federal Executive Council reaffirmed the agreement, emphasizing its importance as a sustainable long-term policy. Following the policy’s reinstatement, Dangote Refinery slashed its ex-depot petrol price to ₦835 per litre—its third reduction in six weeks—underscoring the benefits of local crude supply. During Q1 2025, the refinery received seven cargoes totaling 915,821 barrels from the Okwuibome field operated by Sterling Oil (SEEPCO), under a Production Sharing Contract. However, SEEPCO has faced scrutiny over alleged expatriate quota abuse and anti-labour practices, prompting investigations and sanctions from the Nigerian Content Development and Monitoring Board (NCDMB). Despite these controversies, SEEPCO’s operations continue to play a vital role in Nigeria’s oil sector. The NNPCL’s sales documents listed crude shipments to Dangote Refinery with transaction values ranging from ₦5.69 billion to ₦34.18 billion. These shipments contributed significantly to local supply while leveraging domestic exchange rates. The total value of the crude lifted by Dangote Refinery was $70.54 million, equivalent to ₦107.44 billion, all settled in naira. In addition to domestic sales, NNPCL also realized ₦228.94 billion from exporting 1.95 million barrels of crude oil to international refiners, sourced from Egina, Erha, and Forcados Blend fields. These export transactions, executed under Production Sharing Contracts with companies like Total, ExxonMobil, and Pan Ocean, were priced between $74.90 and $78.94 per barrel. The export exchange rates provided by the Central Bank of Nigeria were slightly lower than those used for Dangote’s domestic purchases, reflecting the volatility in the foreign exchange market and the challenge of balancing forex earnings with domestic energy priorities.