NNPC prioritises Dangote for naira crude sales – CORAN

The Crude Oil Refinery-owners Association of Nigeria (CORAN) has alleged that the Nigerian National Petroleum Company (NNPC) is prioritising the sale of crude oil in Naira to Dangote Refinery.

For over two decades, Africa’s biggest economy has operated an arrangement that ensures that about 445,000 barrels of crude oil per day (the nameplate capacity of Nigeria’s four government-owned refineries) are set aside from the federation’s share of oil and channelled for domestic refining.

The allocation would be paid for in naira, and the defunct Petroleum Products Marketing Company would recoup proceeds via the distribution and sale of the resulting refined products within Nigeria.

Eche Idoko, publicity secretary of CORAN, told TheCable on Monday that the sale would begin on October 1.

Idoko said the federal government had promised to only supply crude oil to the Dangote refinery as it was the “only refinery producing petrol”.

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“We were present at the inaugural meeting where the federal government did make us understand that they would want to start the naira sales in phases. That they would start with refineries that are producing PMS first and extend it to other refineries and that’s where they are right now and we can say the first phase of the naira sales will start in October,” Idoko said.

“No other refinery (apart from Dangote refinery) is selling petrol at the moment but I know that there are other refineries working on their plants that would be producing petroleum like the Clairgold refinery which intends to produce PMS.

“There is also Aradel which is working on their PMS plant. There is also Azikel Petroleum Refineries, which is also working on producing PMS.

“The last I heard with respect to that arrangement, the October date still remains and we have spoken with people at Dangote and they said conversations are ongoing.”

However, he said the details of the transactions would be made known when the federal government makes the announcement.

“For instance, are they going to discounts as in the normal practice when you are selling crude to the international traders? If there is going to be a discount, that is what will guarantee the reduction in price of petroleum products,” Idoko said.

“We also want to know at what rate is the exchange rate pegged. Is the federal government intending to maintain the N1,600 exchange rate?”

He said Nigerians would know the potential price of petroleum products when all the details are unveiled.