News
Low crude supply mars Naira-for-Crude Scheme
By Kayode Sanni-Arewa
There is a raging concern that the Naira-for-Crude initiative, which ensures local refineries receive crude oil in Naira and sell refined products to marketers in the local currency, may be threatened over inadequate crude supply to domestic refiners, findings by Daily Trust have shown.
Daily Trust reports that President Bola Ahmed Tinubu had directed the sale of crude oil to Dangote in naira as part of move to bring down the cost of premium motor spirit (pms) otherwise known as petrol.
In October 2024, the Federal Executive Council (FEC) approved that 450,000 barrels intended for domestic consumption be offered in Naira to Nigerian refineries, with the Dangote Refinery acting as a pilot project.
Under the scheme which commenced in the first week of October 2024, the NNPCL was expected to supply 385,000 barrels of crude oil to the 650,000 bdp Dangote Refinery located in Ibeju-Lekki Lagos.
However, findings showed that there has been a consistent low supply of allocations to Dangote Refinery, forcing it to resort to importation.
Official documents reviewed by our correspondent revealed that while Nigeria’s crude oil production has marginally increased, exceeding 1.8mbpd, there has been a sharp decline in the volume of crude allocated to the Naira-for-Crude scheme.
The document revealed that for February 2025, the scheme has been allocated only four cargoes, and for March, just two cargoes totalling 950,000 barrels (1.9 million barrels in total for the month). This represents an allocation of 61,290 barrels per day – far below the 385,000 bpd target under the scheme.
The Dangote refinery is set to receive 12 million barrels of crude oil from the United States, as local supply constraints have hindered its bid to attain full refining capacity of 650,000 barrels per day.
Amidst this challenge, it was learnt that the Nigerian National Petroleum Corporation (NNPC) Limited and allied marketers continue importing petroleum products into the country, spending over N5 trillion on importing Premium Motor Spirit (PMS) and diesel (AGO) within 110 days.
An oil and gas expert in the public sector, who spoke on the condition of anonymity warned that the Naira-for-Crude initiative might be undermined and threatened the potential for improving energy security in Nigeria.
He emphasised that these products, paid for entirely in Naira, are crucial to the government’s efforts to stabilise and strengthen the currency.
“The refineries pay fully for these products at international rates, but in Naira. The Dangote Petroleum Refinery and other domestic refineries then sell to marketers in Naira, thus eliminating currency or forex risks and reducing reliance on the dollar for domestic transactions.
By aligning domestic transactions with Naira payments, the government is effectively reducing Nigeria’s dependency on the US dollar, particularly in the oil sector, where a large portion of Nigeria’s foreign reserves has traditionally been spent on oil imports,” he explained.
He added that, “undoubtedly, its success is a testament to the visionary leadership of President Bola Tinubu and the Federal Executive Council, who, despite persistent opposition, have ensured its successful implementation. This initiative, which is critical to Nigeria’s ongoing economic reforms, must not be derailed”.
Importation continues despite local refineries
According to the motor tanker vessels report from the Nigerian Ports Authority, a total of 2,846,499.41 metric tonnes of PMS and 791,619.00 metric tonnes of diesel were imported between October 1 and December 31, 2024.
In addition, a total of 342,199mts of PMS and 146,866mts of AGO were imported into the country between January 1 and 29, 2025.
This equates to the importation of over four billion (4,276,044,567.81) litres of PMS and over one billion (1,103,658,360) litres of diesel within 121 days, using a conversion factor of 1,341 litres per metric tonne for PMS and 1,176 litres per metric tonne for AGO.
At an average landing cost of N940 per litre for PMS and N920 per litre for AGO, Nigeria has spent over four trillion Naira (N4.019 trillion) importing petrol and over one trillion Naira (N1.015 trillion) on diesel imports during the period.
This continued importation despite the huge local refining capacity is targeted at crippling local refineries, especially the Dangote Petroleum Refinery, another source said.
Oil and gas expert, Dr. Ayodele Oni in a chat with our correspondent noted that despite improved crude oil production, the forward sale arrangements had made it difficult for the NNPC to fulfill obligations to the local refiners.
He stated that the divestment by the IOCs is also responsible for the challenge, saying there must be improved production to sustain the naira for crude scheme.
The expert however stated that it is strange that Nigeria continues to import so much despite the increased refining capacity through Dangote Refinery, Aradel, and the recently revived government-owned refineries.
A source at the Dangote Refinery who spoke on the condition of anonymity explained that in line with its commitment to serving Nigerians and keeping prices affordable, the refinery continues to sell products to marketers in Naira, while absorbing logistics costs to ensure uniform pricing across the country.
“The Refinery generously assumes equalisation status, which only the government does undertake. This has been met with enthusiasm by our partners, such as MRS, Heyden, and Ardova. The Petroleum Products Retail Outlet Owners Association has entered into an agreement with the refinery to distribute its PMS nationwide at a uniform price across all its filling stations,” he said.
The Chief Spokesperson of the NNPCL, Mr. Olufemi Soneye could not be reached for comment yesterday on the challenges in fulfilling the obligations to the local refiners. Calls and text messages to him were not answered as of the time of filing this report.
The President of the Nigerian Bar Association, Afam Osigwe (SAN), has voiced his concerns regarding the worsening security conditions in the South-East. He pointed out the prevalence of unlawful detentions, extrajudicial killings, and violations of human rights.
Osigwe condemned these troubling developments, highlighting their role in the erosion of law and order in the region. “The security challenges facing the South-East should be treated with the utmost seriousness and the attention they merit.”
“There has been a breakdown in law and order in many parts of the South-East, many communities no longer have a presence of local government, police stations have been destroyed, people are being kidnapped and ransomed, and people are beginning to take it as the order of the day,” he said.
He condemned the practice of some magistrates without jurisdiction, granting remand orders, leading to prolonged and unjust detentions.
He noted that over 68 per cent of prison inmates in the country were awaiting trial, adding that many had spent more time in detention than they would have if convicted.
“We condemn a situation where people are being held in remand, and we have also sent out an appeal to all Chief Judges to ensure that no magistrates’ court gives an order of remand without providing a return date for a review of the remand order.
“No person should be remanded without having his day in court – without being charged to court.
“And courts that have no jurisdiction should end the practice of granting indefinite remand.”
Osigwe called on the CJs to direct magistrates not to remand any suspect without charging them to court.
He also urged victims of unjust remand to seek redress in court, adding that NBA lawyers would be willing to offer pro bono services to support them.
“Naturally, they should be able to sue the state for detaining them without trial,” Osigwe advised.
“And it is for their lawyers to make a decision; we can’t go out because it is against our rules of the profession to instigate people to go to court, but where people feel aggrieved and want to approach lawyers, many NBA lawyers are willing to offer pro bono services,” he said.
Osigwe further stated that the NBA was working to promote peace and security in the south-east, through constructive engagement with relevant agencies, and advocacy.
The Nigerian judiciary has designated 48 justices across various divisions of the Federal High Court to handle cases brought by the Economic and Financial Crimes Commission (EFCC).
This decision, contained in a press statement dated February 13, 2025 and signed by the Chief Judge of the Federal High Court, Justice John T. Tsoho, is aimed to fast-track the prosecution of financial crimes, money laundering, and corruption cases that have long plagued Nigeria’s judicial system.
“The following Judges are hereby designated to handle Economic and Financial Crimes Commission (EFCC) cases in their respective Divisions,” the statement reads.
The judges assigned to oversee these cases include Justices I. E. Ekwo, J. O. Abdulmalik, J. K. Omotosho, Emeka Nwite, M. S. Liman, and H. J. Yilwa in the Abuja Division.
In Lagos, Justices C. J. Aneke, Y. S. Bogoro, D. E. Osiagor, and O. A. Oluseyi have been designated.
Port Harcourt will have Justices P. M. Ayua and A. T. Mohammed handling EFCC cases, while in Calabar, Justice I. L. Ojukwu is assigned.
In Asaba, Justices F. A. Olubanjo and O. A. Agbaje will preside over corruption cases, while Justice H. A. Nganjiwa is designated for Warri. Yenagoa has Justice N. Ayo-Emmanuel assigned, while Uyo will have Justice C. S. Onah.
In Kano, Justice S. M. Shuaibu will handle cases, while Bauchi has Justice Aminu Garba. Jos will have Justices D. V. Agishi and S. I. Tanko.
Lafia will see Justices M. O. Olajuwon and A. Onoja-Alapa overseeing EFCC trials. In Makurdi, Justices M. S. Abubakar and E. R. Joshua have been designated, while in Ilorin, Justice M. O. Awogboro will handle cases.
Justice B. K. Usman is assigned to Yola, Justice J. K. Dagat to Maiduguri, and Justice F. M. Aminu to Damaturu. Kaduna will have Justice R. M. Aikawa handling EFCC cases, while in Katsina, Justices A. B. Aliyu and H. Dadan-Garba are assigned. Sokoto will have Justice A. G. Mahmud overseeing financial crime trials.
In Umuahia, Justices S. B. Onu and K. O. Ogundare will preside, while Awka has Justice E. N. Anyadike.
Justice H. I. O. Oshomah is designated for Abakaliki, while in Enugu, Justices M. G. Umar and F. O. G. Ogunbanjo are assigned. Owerri will have Justices I. N. Oweibo and C. J. Wigwe-Oreh handling EFCC cases.
Justice C. A. Obiozor is assigned to Benin, Justice B. O. Kuewunmi to Ado-Ekiti, and Justice A. J. Adeyemi to Abeokuta.
In Akure, Justice T. B. Adegoke will handle EFCC corruption cases, while Osogbo has Justice A. A. Demi-Ajayi. The Ibadan Division will see Justice U. N. Agomoh overseeing EFCC matters.
The latest development comes amid public outcry over delayed trials, prolonged adjournments, and allegations of judicial interference in cases involving politically exposed persons and corrupt government officials.
Despite the EFCC securing convictions in some cases, critics argue that the judicial process has been weaponised to either stall or fast-track cases depending on political interests.
SaharaReporters has previously reported on how influential politicians, former governors, and top government officials use legal loopholes and judicial delays to evade justice.
Many corruption cases have dragged on for years, with some abruptly dismissed due to technicalities.
A bill to abolish the dichotomy and discrimination between Bachelor’s Degree holders and Higher National Diploma (HND) holders has scaled second reading in the House of Representatives.
According to the Speaker, Tajudeen Abbas, the bill sought to replace HND with Bachelor of Tech so that graduates of polytechnic would be able to compete favourably with other university graduates.
The bill, which was sponsored by a member, Fuad Laguda from Lagos State, also emphasised the importance of technical education.
Speaker Abbas said the position taken by all boards of polytechnics in Nigeria is “the abolition of HND and in place of it to have Bachelor of Technology so that at least graduates of polytechnics will be able to compete with those from universities”.
“At the same time, they are calling for hybrid supervision where the degree component of the polytechnic education will be handled by the NUC (National Universities Commission) while the national diploma will continue to be handled by the NBTE (National Board for Technical Education).
“Because of the degree component of this amendment, they felt that the qualification for being rector should also be upgraded to a Ph.D holder at the minimum since you will now be talking about degree programmes, it is only proper for such kind of establishment to have a Ph.D holder as the head of the institution,” he said.
Abbas subjected the bill to a voice vote and the lawmakers approved it to scale second reading.
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