NewStats: 3,261,250 , 8,173,514 topics. Date: Wednesday, 28 May 2025 at 04:45 PM 5k682f

Oil and gas experts have said that President Bola Ahmed Tinubu’s recent order to the Nigerian National Petroleum Company Limited on sale of crude oil in Naira to Dangote Refinery and other local refineries will not end the 650,000 barrel per day refinery’s challenges in the sector.

DAILY POST reports that in a major decision on Monday at the Federal Executive Council, Tinubu approved NNPCL to sell crude oil to Dangote Refinery and other local refineries in Naira.

The move was aimed at ending the crude crisis being experienced by local refineries.

Recall in the last months, Dangote Refinery has continued to lament the crude oil supply crisis and other challenges experienced in Nigeria’s oil sector.

This is as it approached the US and Brazil for crude import despite Nigeria being Africa’s largest crude producer.

Dangote Refinery had accused International Oil Companies in Nigeria of sabotage over the supply crisis. The company later had a dispute with the Nigerian Midstream and Downstream Petroleum Regulatory Authority over regulatory compliance.

As the crisis raged, the Chairman of Dangote Group, Aliko Dangote, alleged that NNPCL officials own a blending plant in Malta, a southern European island.

However, on Monday, Tinubu ordered NNPCL to sell crude in Naira to Dangote Refinery and other local refineries.

The Special Adviser to the President on Information and Publicity, Bayo Onanuga disclosed this in a statement on his X .

Onanuga said the move was to ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate.

Accordingly, he said the country’s 450,000 barrels of crude meant for domestic consumption should be sold in Naira to Nigerian refineries with Dangote Refinery as a pilot.

This becomes expedited as “Dangote refinery currently requires about 15 cargoes of crude oil at about $13.5bn yearly. NNPC has committed to supply four”, he said.

In a further analysis of the development, the President’s Special Adviser on Revenue, Mr. Zacch Adedeji, who also serves as Chairman of the Federal Inland Revenue Service, said Monday’s move mitigates Nigeria’s heavy reliance on foreign exchange for crude oil imports, ing for roughly 30 to 40 percent of its forex expenditure.

According to him, the decision will save the country an estimated annual savings of $7.3 billion and will reduce monthly forex expenditure on petroleum products by an estimated $660 million.

“Monthly, we spend roughly $660m in these exercises, and if you analyze that, that will give us $7.92bn savings annually,” he stated

Meanwhile, experts within the oil sector have expressed divergent views on the implications of Tinubu’s order and its impact on the Nigerian economy.


Experts React

The Managing Partner, BBH Consulting and Convener, Public Interest Advocacy Network, PIAN, Barr. Ameh Madaki believes that Tinubu’s order on crude oil sale in Naira will not solve Dangote Refinery’s crisis.

He said this was because the country had no spare crude oil to sell to any refinery.

According to him, the crude oil forward sale contracts secured for Nigeria by NNPCL meant that there was barely any production from the current 1.2 million barrels per day to sell to local refineries.

Ameh said the best way out was to sell the crude oil for domestic consumption at the wellhead cost of production.

“It will not solve the Dangote Refinery’s crisis. Because the country had no spare crude oil to sell to any refinery. With all their forward sale contracts, there is barely any production from the current 1.2 million barrels a day to sell to anyone.

“The only policy which will make some sense is to sell the crude oil for domestic consumption at the wellhead cost of production.

“Otherwise, we will be chasing shadows and people will be pocketing millions of dollars in fraudulent subsidy payments”, he told DAILY POST.

Similarly, an energy expert, Joseph Eleojo said: “Where is NNPCL getting the crude to sell to Dangote and other refineries from? This goes to tell Nigerians why the local refineries have not worked for 35 years.

“The decision to sell crude to Dangote in Naira is a wonderful decision as it will lessen the pressure on Dangote and the other refineries from sourcing FX to buy crude.

“Nigerians should not expect drastic price discounts because crude oil is sold to the local refineries in Naira”.

Meanwhile, Group Chairman of International Energy Services Limited, Dr Diran Fawibe said Tinubu’s decision to allow crude oil sale in Naira to Dangote Refinery will help the refinery to price its product properly.

He said that the indirect impact of the decision will reduce pressure on the Naira and importation of fuel.

“It is a good decision on the part of the Federal Executive Council and the President.

“About 300,000 to 400,000 bpd has been allocated to domestic, which has been the case for many years based on the capacity of Nigeria’s refineries. It makes a lot of sense to approve crude oil sales to Dangote Refinery and other local refineries in Naira.

“This will assist the refinery to price its product properly for the benefit of Nigeria. Hitherto, crude has not been sold in Naira.

“The indirect benefit is that petrol import with the operation of Dangote Refinery will be reduced. Similarly, the FX used for fuel import will be reduced to a reasonable extent.

“This will benefit the FX market. You can imagine if there is no fuel in the country, even the queue we are currently experiencing may reduce. I expect that a Naira crude oil price regime will impact sustainable product pricing in Nigeria and stem the importation of fuel”, he said.

On his part, the founder and CEO of Centre for the Promotion of Private Enterprise, PE, Dr. Muda Yusuf, said the decision will ease the current pressure on petroleum products pricing in Nigeria.

However, Muda noted that the major challenge may be the capacity of NNPCL to supply the crude.

“This is surely a welcome development and will go a long way to easing the current pressure of pricing of Petroleum products in Nigeria, especially given the capacity of Dangote Refinery.

“The major challenge now is the capacity of NNPCL to supply the crude. It is one thing to give a liberal payment condition (that is paying for the crude in Naira), it is another thing to make the crude available.

“I think this remains a major challenge. If the NNPCL can make the crude available for Dangote refinery and other local refineries, it will be a great idea.

“The benefits will be transmitted to the citizens in of more supply of petroleum products, and moderation in the price of the product.

“Because we are in a situation where we worry about the cost of living, social stability, economic development, and the issue of production; in all these things, access to energy is central. It is paramount that NNPCL can provide the crude”, he told DAILY POST.

https://dailypost.ng/2024/07/30/tinubus-order-wont-end-dangote-refinery-woes-experts/

Tinubu is useless



Old fool

E be like say dem no sabi wetin dem dey talk. Tinubu dey try, but na the same old wahala wey don dey ground for long. Make we no forget say change no dey happen overnight.

The refinery woes +the woes of this corn3 is beyond Thïefnubu.

They used all the crude oil up to the ones still underground to borrow loans. Guys Nigeria is in trouble

I was laughing at the clowns who are suffering from memory loss when they were hailing Tinubu.

Nigeria has sold its crude oil in advance. So where would NNPC get the one they will sell to Dangote?

This is public knowledge. Dangote imported crude oil from other countries because NNPC has sold our crude oil in advance to pay for loans.

Islie:


https://dailypost.ng/2024/07/30/tinubus-order-wont-end-dangote-refinery-woes-experts/

According to him, the crude oil forward sale contracts secured for Nigeria by NNPCL meant that there was barely any production from the current 1.2 million barrels per day to sell to local refineries.

Smh. Absolute bunkum! Awon olodo 'experts'.

Watch how other olodos reading this junk report will not bother to find out that the 'expers' are mediocre. This news media and whoever unleashed this kind of mediocrity on the reading public should be reported to the professional body for appropriate sanctioning. This is completely objectionable and upsetting!

It is unapologetically mediocre that a supposed newspaper like dailypost report is quoting our oil production at 1.2m bpd and repeating such an obsolete information to mislead and prove that the 'expert' is a quack for not knowing that Nigeria is currently producing over 1.6m bpd! Experts indeed!

Awon olodo upon 100 gbogbo. This is why those in government never take them serious, they know that those criticizing them are ignorant and lazy. At the current rate of over 1.6m bpd, NNPCL supplying 450,000 for the whole year is small and no big deal. The koko is in helping these local refineries get the crude in naira instead of struggling for forex upandan.

Nigeria can conveniently deliver that 450,000 barrels in a year to help the local refineries get a headstart.

It is only those who are ignorant about the topic and too lazy to engage intelligently who are uncouth and destructive to our collective creative minds but we must resist them and their toxic unpatriotic destructive upbringing and actions.

May God bless Nigeria for ever! Check my signature for free stuffs!

Experts will always find a way to downplay progress. Tinubu's leadership is what we need to turn things around.

The refinery challenges are just stepping stones to greater heights.

With the right policies in place, there's no stopping us!

“Where is NNPCL getting the crude to sell to Dangote and other refineries from? This goes to tell Nigerians why the local refineries have not worked for 35 years.

I have always found it amusing when Nigerians claim Nigeria is rich because we have oil. The above shows how poor our nation actually is.

Dangote should buy crude oil wherever he finds it. His refinery is after all large enough to sell outside Nigeria, so getting foreign exchange should not be a problem.

He also should sell in Nigeria at a profit. Sorry folks, but that does mean at likely twice or triple the current price. He after all did not build it as charity to feed anyone.

Don’t mind those fools they know nothing

Philipponzaghi:
Experts will always find a way to downplay progress. Tinubu's leadership is what we need to turn things around.

The refinery challenges are just stepping stones to greater heights.

With the right policies in place, there's no stopping us!

Nigerians dont knw dt our fedral govt has sold out our crude oil ahead for more than 9yrs to come in plaace of debt and borrow .

D annouyin thin is dt,nothing to show out of all these

Ok

It shall be well with Nigeria. Under this istration too.
There's what is called a 'ing phase'.
Haterz...I get am for sniper

MasterJayJay:
I was laughing at the clowns who are suffering from memory loss when they were hailing Tinubu.

Nigeria has sold its crude oil in advance. So where would NNPC get the one they will sell to Dangote?

This is public knowledge. Dangote imported crude oil from other countries because NNPC has sold our crude oil in advance to pay for loans.

Do not mind the criminal minds that are all over our space lying to the public. They can count their teeth's with their tongues

Never invest more than 20 % of your wealth in Nigeria

keep crying omo ibo





quote author=AqualinaXYZ post=131226305]Tinubu is useless



Old fool[/quote]

AqualinaXYZ:
Tinubu is useless



Old fool

Na today you know? He just acted good in the open but behind the scene he is pulling the strings to pull down Dangote Refinery. Who be mumu?

You guys was enjoying when GEJ was around. Price of crude go up, naira strengthen. Today, na so so nonsense from the people wey say them Wan fix GEJ issues. How far? Where tribalism Don land una, una no go fit escape

Ok

It is obvious, even if Nigeria is producing 10 million barrels a day

Dangote should play politics, since dem dey play tribalism with am.


Dangote should sell the plant and the 419 $100million land, at a slightly lower rate to the chinese and Russians, make dem go do tribalism with them, make dem see sumthin.

Morenikeji090:
Don’t mind those fools they know nothing

Na YOU sabi everything going on. You try ehn.

Tinubu is not in charge, the cabals are

Expert, everyone is an expert until they are given the job to do.

Whether they like it or not, this refinery must succeed

Image123:
Expert

this guy? Nope because hungry dey finish you.

tifirmuny:
They used all the crude oil up to the ones still underground to borrow loans. Guys Nigeria is in trouble

You are wrong. They even used the crude oil of yet to be discovered oil deposits to borrow

AqualinaXYZ:
Tinubu is useless



Old fool

your father might even be more useless

FACT!

bemeruca:
this guy? Nope because hungry dey finish you.

The thief among our many thieves that said stealing is not corruption.