In light of the uncertainties surrounding the price of petroleum products, there are hints that the Federal Government’s Naira-for-crude panel may meet again on Monday to discuss whether to extend the crude sales agreement with Dangote Refinery.
This was revealed on Thursday by credible sources in the Finance and Petroleum Resources Ministries who wished to remain anonymous.
This follows Dangote Refinery’s announcement on Wednesday that it will no longer be selling petroleum goods in Naira.
The Nigerian National Petroleum Company Limited and the Dangote Refinery are at a standstill in their negotiations regarding the continuance of the Naira-for-crude sale deal, as evidenced by the refinery’s decision to halt the sale of gasoline products in Naira.
Officials with knowledge of the situation, however, say the plan might go forward.
After the state-owned company pre-sold significant quantities to foreign creditors under its crude-backed loans, it was confirmed that NNPCL was experiencing a problem in crude availability.
“The plan won’t stop. The availability of petroleum is the difficult part, as NNPC claims to have pre-sold a significant amount of crude.
The Nigeria Upstream Petroleum Regulatory Commission has been tasked with developing solutions, and the committee decided to meet again on Monday of next week to discuss these choices. The official said, “The committee is attempting to dimension solution options.”
Recall that the committee convened at the Ministry of Finance Headquarters in Abuja last week to evaluate progress and restate pledges to the framework of the naira-for-crude program.
The Chief Financial Officer of the Nigerian National Petroleum Company, the Executive Commissioner of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun (who participated virtually), and other stakeholders attended the meeting.
Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, responded to the news by saying that its members will not be deterred from looking for other petroleum product suppliers.
“The market is getting ready for anything unexpected. We will therefore have options in case of unexpected,” he stated.
In order to keep the pace of the gasoline price template, Hammed Fashola, president of the Independent Petroleum Marketers Association of Nigeria, urged the government to step in and support the continuation of the Naira-for-crude strategy.
“To maintain the pace of petroleum product prices, I would like to recommend that the FG reexamine the agreement with Dangote,” he stated.