Native refinery homeowners affirm finish of Naira-for-Crude initiative for native refineries  

The Crude Oil Refinery-owners Affiliation of Nigeria (CORAN) has confirmed the top of the Naira-for-Crude initiative of the Federal Authorities which was aimed toward supporting native refineries.

The Nationwide Publicity Secretary of CORAN, Eche Idoko, in a chat with Nairametrics, defined that the primary part of the Naira-for-crude association was meant to finish in March and it has ended.

Idoko, nevertheless, clarified that opposite to speculations that the association was terminated by the Nigeria Nationwide Petroleum Firm Restricted (NNPC), the primary part of the association has ended.

He famous that the affiliation is hoping for a renewal however has but to listen to from the federal authorities on that.

He mentioned: “The Naira for Crude settlement was supposed to finish in March as the primary part and it has ended and we’re but to get the federal government’s renewal.  

“So it was not as if the NNPC terminated it. The unique settlement was that it was supposed to finish, the pilot part was supposed to finish in March, after which after which they’d assess it and see whether or not it was of any impression after which renew.  

“They haven’t communicated to us on that and in order that’s the place we at the moment are.”

Concerning the Naira-for-Crude initiative  

Final yr, the Federal Government Council (FEC) accredited the Naira-for-Crude initiative wherein native refineries will likely be equipped crude oil in Naira relatively than {dollars}.

• This was aimed toward stabilizing gas pump costs and the dollar-Naira alternate fee.
• Nevertheless, Nairametrics reported that the implementation of the initiative was inconsistent, inflicting native refineries to battle for crude provides to keep up operations.

In accordance with the federal authorities, in the course of the approval of the initiative, native refineries could be allotted 450,000 barrels of crude oil per day with the Dangote refinery receiving 385,000 bpd (or 12 million barrels per 30 days).

• Nevertheless, paperwork seen by Nairametrics present that the Dangote refinery was allotted solely 61,290 barrels per day in February 2025 beneath the Naira-to-Crude association.
• In the entire of February, the refinery was allotted cargoes of 6.5 million barrels, whereas the allocation was lowered to 4.75 million barrels for March.

Native refiners mentioned the inconsistency of the Naira-for-crude initiative disrupted crude provides.

What you must know 

• Regardless of a rise in Nigeria’s crude oil manufacturing, the nation nonetheless imports as native refineries fail to get feedstock domestically. The 650,000 bpd Dangote refinery, in its efforts to optimise its full capability of refining 650,000 barrels per day, has resorted to importing crude oil from america within the absence of adequate provides domestically.

• Nairametrics reported that Nigeria imported 47,000 barrels per day of U.S. WTI crude in 2024, with a considerable share going to the Dangote refinery. In December 2024, Dangote Refinery bought shipments of imported crude as much as 358,000 barrels per day in December 2024, in response to Tanker-tracking knowledge compiled by Bloomberg.
• This case has uncovered Nigerians to the volatility of the worldwide oil market.