The Federal Government is set to hold a meeting on Monday to review the continuation of the Naira-for-crude deal with Dangote Refinery amid rising fuel price concerns. Officials from the Ministries of Petroleum Resources and Finance confirmed the meeting on Thursday.
Crude Supply Challenges
Dangote Refinery recently suspended sales of petroleum products in Naira, pointing to ongoing issues with the Nigerian National Petroleum Company Limited over crude supply. NNPCL has struggled to meet its commitments due to pre-sold crude volumes tied to foreign loan agreements.
A government official stated that while the deal is unlikely to end, securing crude remains a major challenge. The committee overseeing the agreement will reconvene on Monday to explore solutions.
High-Level Talks on Policy Continuation
Last week, key government officials met at the Ministry of Finance to reassess the situation. The meeting included the Minister of Finance, Wale Edun, the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, and top executives from NNPCL and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Fuel Marketers Prepare for Uncertainty
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, said marketers are preparing for possible supply disruptions. Hammed Fashola, President of the Independent Petroleum Marketers Association of Nigeria, urged the government to maintain the policy to ensure fuel price stability.
Outlook on Fuel Prices
The upcoming meeting will be crucial in determining the future of the Naira-for-crude deal. The government’s ability to secure enough crude for local refineries will directly impact fuel supply and pricing in the coming months.