The Nigeria Nationwide Petroleum Firm Restricted (NNPCL) has clarified the top of the Naira-for-Crude association with native refineries, disclosing that it equipped the Dangote refinery with 84 million barrels of crude oil because it started operation.
Nairametrics earlier reported that the Naira-for-crude initiative of the federal authorities had ended.
Based on the Nationwide Secretary of the Crude Oil Refinery-owners Affiliation of Nigeria (CORAN), Eche Idoko, the pilot part of the association ended this month and it’s but to be renewed.
“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,” Idoko instructed Nairametrics in an unique chat.
In an announcement issued on Monday by the NNPCL’s Chief Company Communications Officer, Olufemi Soneye, he confirmed that the pilot part of the association was made for six months.
Soneye denied claims in a piece of the media that the NNPC terminated the Naira-for-Crude contract with the Dangote refinery.
“NNPC Restricted has famous current studies circulating on social media concerning the alleged unilateral termination of the crude oil gross sales settlement in Naira between NNPC and Dangote Refinery.
“To make clear, the contract for the sale of crude oil in Naira was structured as a six-month settlement, topic to availability, and expires on the finish of March 2025.
“Below this association, NNPC has remodeled 48 million barrels of crude oil accessible to Dangote Refinery since October 2024. In combination, NNPC has remodeled 84 million barrels of crude oil accessible to the Refinery since its graduation of operations in 2023,” he famous.
Dialogue ongoing for renewal
Soneye famous that discussions are ongoing to resume the Naira-for-Crude association. “Discussions are at the moment ongoing in direction of emplacing a brand new contract,” he famous.
He stated the nationwide oil firm is dedicated to supplying crude oil for native refining primarily based on mutually agreed phrases and situations.
What it is best to know
Final 12 months, the Federal Govt Council (FEC) accepted the Naira-for-Crude initiative during which native refineries might be equipped crude oil in Naira slightly than {dollars}, with the purpose of stabilizing gas pump costs and the dollar-Naira alternate charge.
Nonetheless, Nairametrics reported that the implementation of the initiative was inconsistent, inflicting native refineries to wrestle for crude provides to take care of operations.
Regardless of the current increase in Nigeria’s crude oil manufacturing, and the rising variety of native refineries, the nation continues to import each crude oil and refined petroleum merchandise.
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