The Nigerian National Petroleum Company Limited and the Dangote Petroleum Refinery are wrapping up discussions on crude oil sales by NNPC to the Dangote refinery in naira and the buy-back of refined petroleum products from the $20bn plant in naira.

Parties in the deal may conclude discussions next week, the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, declared on Thursday during a space session organised by Nairametrics on X.

The Dangote official also revealed that oil marketers had continued to boycott the diesel and aviation fuel produced by the Lekki-based plant, stressing that they had also reported the refinery to President Bola Tinubu that the plant’s low-priced diesel was counter-productive to oil marketers’ businesses.

Edwin further revealed that NNPC had demanded to oversee the production of refined products at the Dangote refinery, based on the fact that the national oil company would supply crude to the plant.

In August 2024, The PUNCH reported that the Federal Government disclosed that the sales of crude oil to Dangote refinery and other local refineries would commence on October 1, 2024.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this during a meeting with the Implementation Committee established to implement the decision.

“The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, today led the Implementation Committee meeting on the transition to crude oil sales in naira.

“The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024,” the finance ministry had stated in a post on its official X handle in August.

It also stated that the Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, and the Chairman of the Technical Sub-Committee reported that “The first PMS delivery from Dangote is expected next month (September) under existing agreements.”

Providing updates on this during the space session on Thursday, the Vice President at Dangote Industries, Edwin, noted that discussions were advancing on naira transactions for crude purchase and product buy-back.

Naira transactions

Edwin said, “Now we are still discussing with the government to give us the crude in naira. The discussions have been going on. It has not yet been concluded. When we buy the crude from them in naira, they will take the products back from us in naira, that’s where we are. We are still in discussions.

“So now whatever we are producing, they will buy back from us. In fact, NNPC has told us they will have a team of six to 10 people permanently stationed inside our refinery. They even told us we should give them office space because they are going to give the crude.

“They are going to monitor the production and then they will buy it back in naira. So, this is where we are and we are waiting for the conclusion of the discussions. Hopefully, by next week, if it gets concluded, we can kick off.”

Edwin stated that the President of Dangote Group, Alhaji Aliko Dangote, was the one who insisted on dealing with the Nigerian government in naira because of the foreign exchange challenges confronting the country.

“When it came to petrol, we told the Presidency that if we were going to continue to import crude, our cost of production would be high and of course, our quality is very high. So, we will continue to export and manage the business. Then they sat with us and said, ‘Okay, we will try and give you crude allocation and you please produce and sell to us the products which you are producing out of the crude’. We said, yes.

“Then they said, can you sell it in naira? We said, no, we are a free zone company. We will be normally selling in dollars. They said, no, the country is in acute scarcity of dollars. So, please, we will supply the crude to you in naira. Sell the product to us in naira. Though internally, including me, some of us objected to the idea. My president clearly said we are going to accept this because the country is badly in need of foreign exchange.

“The currency value is dropping every day. Yes, I know I am going to take a loss because by the time we sell it in naira and convert it to dollars, (we are not even getting the dollars). By the time we convert, the currency may become weaker. So, we know he (Dangote) is going to lose. He said, I’m willing to take the loss in the interest of the country. I don’t mind, but the country is in bad shape. Somebody has to take certain risks. I’m willing to face the loss to whatever extent it is. So, that is how we agreed,” Edwin explained.

Marketers boycott plant

He also revealed that importers of petroleum products and marketers reported the Dangote refinery to President Tinubu after the refinery crashed the price of diesel.

According to him, over 95 per cent of petroleum product importers in Nigeria are not buying products from the Dangote refinery.

He said the refinery struggles to sell about 29 tankers of diesel per day due to low patronage from local petroleum product importers.

As a result of poor local patronage, the refinery, he said, exports most of its diesel and aviation fuel.

He said the Dangote refinery has imported around 57 shiploads of crude, as local supply from the NNPC remains limited.

“Petroleum product marketers in Nigeria have written to President Bola Tinubu, complaining that the refinery’s local diesel prices, which have dropped from N1,200 to N1,000 and now to N900 per litre, are negatively impacting their businesses,” Edwin stated.

However, he maintained that despite the challenges, 44 per cent of the refinery’s petrol production capacity is sufficient to meet Nigeria’s local demand.

He said, “You can come to the refinery and see, I can load 2,900 tankers daily. The whole country is empty, not one tanker. Whereas, where I can load 2,900 a day, not one tanker is being loaded. So they want to continue to import. So they are just blockading us.

“Number two, they (marketers) even wrote to His Excellency, the President. I have a copy I can share with all of you, where they wrote to the President, ‘Oh, Dangote Group came in and started producing diesel. They dropped the price the first time, they dropped the price the second time, and it is disturbing us.’

“So the interest of the refinery was to produce locally and try to supply at a reasonable price. So, we gave a reasonable price, we dropped and then we dropped the second time and they wrote to His Excellency, the President saying we are dropping the price and disturbing the market. So, they refused to buy from us.”

Currently, the official revealed that around 29 tankers are lifting fuel from the depot of other importers daily, neglecting local production.

Earlier, while speaking on the Brekete Family live show on Monday, Edwin said the Dangote petrol will be exported if the NNPC and other petroleum dealers in the country refuse to patronise it.

Asked if the petrol would be sold locally, Edwin replied, “There has been a kind of a blockade from lifting our products within the country. The traders have been trying to blockade, and so now we have been exporting our petroleum products. PMS, we are ready to pump in as much as possible to the country.

“But if the traders or NNPC are not buying the product we will end up exporting the PMS as we are doing with the aviation jet and diesel,” he declared.

Edwin expressed surprise that the company started facing different challenges it never expected when the refinery was set to commence operations.

He recalled that the philosophy initially was to add value to the raw materials available in the country, regretting that Nigeria is still exporting crude and importing refined petroleum products after over three decades.

Despite having a gantry that can load 2,900 tankers per day, Edwin disclosed that the refinery has not loaded up to five per cent of the gantry’s capacity owing to low local patronage.

“Go and see our product gantry, we can load 86 tankers at any given time. We can load 2,900 tankers of petroleum products every day, but we are not even loading five per cent, because those who are interested in the trading business, feel that probably this local production is going to affect their established interest, so they are not allowing our products to be sold locally. They are not coming to lift our products. So, what are we doing? We are exporting the products.

“Yes, the refinery can survive, we can import the crude, we can export petroleum products, and we can survive. But is that why he invested in the refinery?” he queried.

NNPC tackles lawmaker

In another development, the spokesperson of NNPC Olufemi Soneye, tackled Dr Muiz Banire, SAN, and former Commissioner of Transport and Environment, Lagos State, for contending in his column in a newspaper publication (not The PUNCH) that NNPC is the black hole of Nigeria.

“At this critical intersection, the task for all well-meaning Nigerians should be how to find lasting solutions to the mischiefs in the oil sector and not to look for scapegoats, as Dr Banire has done.

“According to Banire, Nigeria has been experiencing fuel scarcity since 1973 on the back of fuel subsidy and the NNPC Ltd is responsible for it. The assertion that the NNPC is responsible for this state of affairs is moot. The policy of fuel subsidy is not the preserve of the NNPC.

“Various administrations over the years have thought it wise to subsidize the cost of petroleum products for citizens. They came up with different methods of doing that. The role of NNPC Ltd has been to implement the policy as decided by the government. At a point when the various administrations felt that the fuel subsidy policy had become a burden that should be done away with, they made it known. NNPC Ltd, as the national oil company, implemented it.

“This was the case in 2012 when the nation went up in protest against the government’s decision to remove fuel subsidies. The same scenario repeated itself in 2019 when the then-administration came up with the policy to remove fuel subsidies. NNPC Ltd is neither responsible for the policy of fuel subsidy nor its removal,” Soneye stated.

Source: https://punchng.com/NNPC-Dangote-eye-crude-sale-product-buy-back-deal

Thought they had settled the naira for crude/fuel deal?

H

Whatever they have to do let them do fast abeg

Xsa

The fight between Dangote, NNPC, and the independent marketers is not for the masses interest, and both NNPC & IPMAN are not willing to led go of their access to cheap and subsidize dollars from the government. And government are not willing to quickly resolve the issue because most of them are the big players in the oil and gas sector, that's why they allow NNPC, IPMAN AND DANGOTE to continue in this distasteful kere_wawa dance while the masses keep buying at exorbitant prices.


“Petroleum product marketers in Nigeria have written to President Bola Tinubu, complaining that the refinery’s local diesel prices, which have dropped from N1,200 to N1,000 and now to N900 per litre, are negatively impacting their businesses,” Edwin stated.

If Dangote can sell diesel @ #900 it means petrol (Pms) would be sold less than that.

adenigga:


Source: https://punchng.com/NNPC-Dangote-eye-crude-sale-product-buy-back-deal

But how did NNPC invest millions of dollars in Dangote refinery without an initial agreement of terms.


EFCC where are you?

The presidency
Wants
Nnpc and marketers
To take
The blame
As
If
The
President
Is
Not
Petroleum
Minister.

We
Have
Crude oil.

Give Dangote
At
Cheap
Price
With
Arrangement of let say 200/litre
Then
The
Inflation drops
The
Masses
Enjoys
Instead
Of
Increasing MPR to curb inflation
And
Other jargon trial and error

Okay

So Dangote crashed diesel price to N900 and the wicked, unpatriotic marketers refused to buy from him?

Nigeria is a very complicated entity.
The more you look, the less you see.
But one day na one day.
🚶🚶🚶

This country

If they explain Nigeria to you and you understand it, they didn't explain it well.

This back and forth is not necessary. NNPC is insincere and not transparent. If Dangote and his vice have the gut to express themselves almost anytime they're called, I see no reason why NNPC and the presidency have been quiet and missing negotiation deadlines.

Mtcheew

tete7000:
So Dangote crashed diesel price to N900 and the wicked, unpatriotic marketers refused to buy from him?

Imagine this were gari that traders are complaining is too cheap, lol.

I have always said it that the marketers are the evil cabals holding this country hostage, they enjoy how expensive the price of pms and diesel are today, they never want these prices to drop, how can people be so heartless. If dangote decides to sell pms at 400 today, those evil marketers will gang up to destroy the refinery, such satanic gang of clowns. I wish dangote can have his own filling stations across Nigeria so that Nigerians can be buying directly from dangote filling stations

God must surely punish all those deceiving Nigerians through all these dubious NNPC, OVH and DANGOTE REFINERY transactions.

They will never live to enjoy on the suffering of the masses.

The evil they planted must surely hunt them. Amen.

More than half of Nigerians don't love Thier country genuinely

DEXTROVERT:
The presidency
Wants
Nnpc and marketers
To take
The blame
As
If
The
President
Is
Not
Petroleum
Minister.

We
Have
Crude oil.

Give Dangote
At
Cheap
Price
With
Arrangement of let say 200/litre
Then
The
Inflation drops
The
Masses
Enjoys
Instead
Of
Increasing MPR to curb inflation
And
Other jargon trial and error

So Mr Edwin with the moustache also works for the FG,.....Una noh dey tire?

Mjshexy:
I have always said it that the marketers are the evil cabals holding this country hostage, they enjoy how expensive the price of pms and diesel are today, they never want these prices to drop, how can people be so heartless. If dangote decides to sell pms at 400 today, those evil marketers will gang up to destroy the refinery, such satanic gang of clowns. I wish dangote can have his own filling stations across Nigeria so that Nigerians can be buying directly from dangote filling stations

MRS belongs to his brother.

So is like they don’t want dangote price to be cheaper or what?

Why did the marketers reported dangote to the president?

All the selfish marketers making life difficult for the masses may Allah give them what they deserve!

All those who works towards the masses living a better life may Allah bless them!

Lithiumite:


MRS belongs to his brother.

Oh really, then they should work together and load the the filling stations directly so we can boycott those wicked marketers who keep feeding fat on the suffering of Nigerians, this Country has the tendency to have things go well but evil saboteurs do not want it to be so

Mjshexy:
Oh really, then they should work together and load the the filling stations directly so we can boycott those wicked marketers who keep feeding fat on the suffering of Nigerians, this Country has the tendency to have things go well but evil saboteurs do not want it to be so

How many MRS's do you have also it's not that straightforward... They all know the game they are playing and all already know the outcome... They only want you to get used to the 800 to 900 naira pump price which is their desired target price......you SE fuel going as high as 1,200 to 1,300 in some places.....so if he sells at 800 naira you will hail him as a hero......it's all games my brother,i just advise you to hustle hard to always be ahead.

tete7000:
So Dangote crashed diesel price to N900 and the wicked, unpatriotic marketers refused to buy from him?

The marketers are complaining because they can cannot sell the millions of litres of diesel they have in stock at a lower price. It will be a disaster for them.

They are always happy when the price of petroleum products are increased so that they can quickly jack up the price of the product they already have and make quick dubious gains.

Oil marketers and fuel station operators are evil .

Importers buy dirty refined oil for less than N400 per gallon and then sell it to NNPC for N1200. The NNPC resells the oil at a subsidy rate to Nigeria.

The entire process is corrupt and confusing. Remove NNPC and ban the importation of refined oil

CommentOfDMatch:


But how did NNPC invest millions of dollars in Dangote refinery without an initial agreement of terms.

EFCC where are you?

Point of Correction: NNPC have since declined their Investment in Dangote Refineries because they could Not outmanoeuvre Dangote,so the deal broke down.
Besides,all this so called Deals were the NNPC and the Evil Marketers ,just to ShortChange Nigerians, and Until the NNPC and the rogues Marketers are Dismantled - No Peace in the Oil-Energy Sector,in Nigeria
e.g just imagine,the Marketers are saying ' Dangote- Diesel is Cheaper,they need to Import -Arrant Nonsense.tbey are Importing at N1,200 but Dangote is selling his own at 900,you can see how Unpatriotic these Marketers are!
These Marketers and NNPC is the reason - why Fuel Prices are high in Nigeria!
They want Dangote to dance to their tunes.
Very Shameful Situations Indeed.

Abaziaka:
The fight between Dangote, NNPC, and the independent marketers is not for the masses interest, and both NNPC & IPMAN are not willing to led go of their access to cheap and subsidize dollars from the government. And government are not willing to quickly resolve the issue because most of them are the big players in the oil and gas sector, that's why they allow NNPC, IPMAN AND DANGOTE to continue in this distasteful kere_wawa dance while the masses keep buying at exorbitant prices


“Petroleum product marketers in Nigeria have written to President Bola Tinubu, complaining that the refinery’s local diesel prices, which have dropped from N1,200 to N1,000 and now to N900 per litre, are negatively impacting their businesses,” Edwin stated.

If Dangote can sell diesel @ #900 it means petrol (Pms) would be sold less than that.

gbam!u get sense IPMAN is nigeria's greatest enemy

Bluntemperor:


Point of Correction: NNPC have since declined their Investment in Dangote Refineries because they could Not outmanoeuvre Dangote,so the deal broke down.
Besides,all this so called Deals were the NNPC and the Evil Marketers ,just to ShortChange Nigerians, and Until the NNPC and the rogues Marketers are Dismantled - No Peace in the Oil-Energy Sector,in Nigeria
e.g just imagine,the Marketers are saying ' Dangote- Diesel is Cheaper,they need to Import -Arrant Nonsense.tbey are Importing at N1,200 but Dangote is selling his own at 900,you can see how Unpatriotic these Marketers are!
These Marketers and NNPC is the reason - why Fuel Prices are high in Nigeria!
They want Dangote to dance to their tunes.
Very Shameful Situations Indeed.

I'm very happy that Nigerians are now seeing IPMAN for who they are, ENEMY OF NIGERIA