CORAN urges the federal government to renew and expand the naira-crude initiative as it expires in March, citing its success in strengthening the naira and lowering petrol prices. Spokesman Eche Idoko said the policy was initially a trial, with potential expansion to other refineries if proven effective.
The arrangement supplies crude to Dangote refinery to ease naira pressure and ensure affordable fuel.CORAN says NNPC’s suspension of the naira-crude policy aligns with its original plan and shouldn’t cause concern, as renewal depends on its impact.
The initiative, launched in October to ease crude supply issues, allowed refineries to buy crude in naira. NNPC has supplied 48 million barrels to Dangote Refinery and is now in talks to extend the contract.NNPC’s naira-crude deal, benefiting only Dangote refinery, is under review.
Talks for renewal continue, but refineries may now source crude in dollars.NNPC’s crude is tied to forward contracts, leaving none for local refineries. Suspension raises concerns for Dangote Refinery, risking delays and higher costs.NNPC’s suspension impacts private refiners like Waltersmith and BUA. Economists warn it may weaken the naira and hinder petroleum self-sufficiency.
NNPC denies unilateral termination claims.NNPC’s Olufemi Soneye clarifies that the naira-crude deal was a six-month agreement ending in March 2025, with renewal talks ongoing. Since October 2024, NNPC has supplied Dangote Refinery over 48 million barrels, totaling 84 million since 2023. NNPC remains committed to local crude supply under agreed terms.
