NPA begins implementation of crude oil sales in naira to Dangote Refinery, coordinating with key agencies to ensure smooth operations.

The Nigerian Ports Authority (NPA) has started implementing the Federal Government’s directive to sell crude oil and petroleum products in naira to Dangote Refinery.

The Nigerian Ports Authority (NPA) has confirmed the commencement of the Federal Government’s directive to sell crude oil and petroleum products to the Dangote Refinery in naira.

Also read: NNPC to begin supplying crude to Dangote refinery in naira from October 1

Announced on the NPA’s official X handle, the initiative aims to streamline service provision and improve the efficiency of petroleum product sales within Nigeria.

The NPA’s Managing Director, Abubakar Dantsoho, noted that the authority will coordinate all regulatory and security measures necessary to ensure smooth implementation.

The move is expected to bolster the availability of Premium Motor Spirit (PMS) and other petroleum products.

A one-stop shop will be set up under the NPA to oversee service provision, with collaboration from key agencies such as the Nigerian Navy, NNPC Limited, Dangote Group, FIRS, Nigeria Customs Service, NIMASA, and NDLEA. This collaboration will facilitate efficient management and ensure that the initiative is successfully executed.

The initiative is a part of the government’s broader strategy to enhance Nigeria’s economic resilience and manage petroleum product sales using local currency, further cementing the Dangote Refinery’s role in Nigeria’s oil and gas sector.

CBN partners with Microfinance Banks to boost MSMEs growth through financial inclusion, offering credit to rural communities for grassroots development.

The Central Bank of Nigeria (CBN) partners with Microfinance Banks to boost financial inclusion and stimulate MSMEs growth, focusing on rural development.

The Central Bank of Nigeria (CBN) has announced its partnership with Microfinance Banks (MFBs) to promote financial inclusion and enhance the growth of Micro, Small, and Medium Enterprises (MSMEs).

Also read: CBN suspends cash deposit fees until march 2025

This partnership aims to support economic development, especially among the less privileged, by providing access to credit and financial services.

Mr Sah Nyashi, CBN Controller, Yola Branch, made this known during the inauguration of Dabtikir Microfinance Bank Limited in Hong, Adamawa State.

Nyashi, represented by Adamu Yusuf, explained that the collaboration is essential to the successful implementation of the Agricultural Credit Guarantee Scheme.

He emphasised that microfinancing is crucial for channelling loans and credit to underserved populations, which will drive sustainable economic growth.

Dr Asongo Abraham highlighted the role of MFBs as a “beacon” of hope for community development by providing critical access to capital for small businesses.

He urged the bank’s management to adopt technology and build trust with customers for long-term success.

Prof. Benson Baha, Provost of the College of Education, Hong, encouraged locals to take advantage of these banking services, stressing that the bank’s establishment aims to promote grassroots development through accessible finance.

Adamawa House Speaker Bathiya Wesley also pledged support for the MFB to further improve the social and economic wellbeing of the people.

NNPC to supply 385,000 barrels of crude oil daily to Dangote Refinery in naira starting October 1, improving local fuel availability and easing naira pressure.

The Nigerian National Petroleum Company (NNPC) will begin supplying 385,000 barrels of crude oil per day to the Dangote Refinery in naira starting October 1, 2024.

This initiative is part of the Federal Government’s plan to boost local refinery production, reduce pressure on the naira, and improve the availability of petroleum products.

Also read: PENGASSAN advocates for 45% government stake in Dangote refinery

The Nigerian National Petroleum Company Limited (NNPC) will commence the supply of crude oil to the Dangote Petroleum Refinery in naira from October 1, 2024.

This marks the start of a significant shift in the domestic oil market, following approval by the Federal Executive Council (FEC) under President Bola Tinubu.

Zacch Adedeji, Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency, confirmed that NNPC will supply approximately 385,000 barrels per day (bpd) to the refinery, with payments made in naira.

This arrangement will also see the refinery provide the Nigerian market with refined products like petrol and diesel, sold in naira, with diesel available to independent buyers and petrol exclusively sold to NNPC.

The move is expected to reduce pressure on the naira and eliminate unnecessary transaction costs. Additionally, it should enhance the availability of petroleum products throughout the country, as NNPC works closely with Dangote Refinery to ensure a seamless implementation of the new policy.

Adedeji stressed that all associated costs, including those from regulatory bodies like the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), would also be settled in naira. A one-stop shop will be established to facilitate service coordination from regulatory and security agencies.

The $20 billion Dangote Refinery, located in Lekki, Lagos, recently started discharging petroleum products and will now play a key role in reducing Nigeria’s reliance on imported fuel.

The supply deal with NNPC will see around 11.5 million barrels of crude delivered monthly, significantly enhancing local refining capacity.

Meanwhile, modular refineries have called on the government to ensure that they are included in future crude supply deals, as many have faced difficulties due to irregular crude availability.

The Crude Oil Refinery-owners Association of Nigeria (CORAN) expressed concerns that the current arrangement only benefits Dangote Refinery, though they hope for future inclusion.

The modular refineries, some of which produce as little as 1,000 barrels per day due to crude shortages, argue that expanding the scheme to include all refineries could increase overall fuel production and reduce costs for consumers.

Despite this, they await further clarity on the crude supply process for smaller players in the refining sector.

As the crude supply deal approaches, Nigerians hope this initiative will stabilise fuel prices and ensure a steady supply of petroleum products.

The Dangote Refinery has refrained from announcing its petrol price, urging Nigerians to await a formal statement from the presidential committee overseeing the naira-based crude sale.

Despite earlier reports, the refinery denied selling petrol to NNPC at N898 per litre, calling such claims misleading.

The Federal Government has stated that it will not interfere in the pricing dispute between NNPC and Dangote, emphasising that the petroleum sector is now deregulated.