Connect with us

News

Low crude supply mars Naira-for-Crude Scheme

Published

on

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.

Advertisement

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.

Advertisement

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.

Advertisement

“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

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

News

NYSC to Deploy Corps Members to NDLEA Rehabilitation Centres

Published

on

By

The director general of the National Youth Service Corps (NYSC), Brigadier General Olakunle Nafiu, Thursday, acceded to the request of the National Drug Law Enforcement Agency (NDLEA) chairman, Brigadier General Buba Marwa (rtd) for the scheme to deploy corps members with relevant qualifications to the agency’s counselling and rehabilitation centres nationwide.

General Marwa said such centres are already in existence in 30 states with plans to establish seven  more in a bid to ensure that the 36 states and the FCT have one each.

The NDLEA boss made this request when the NYSC director general paid a courtesy visit to his office in Abuja. Marwa called for a Memorandum of Understanding (MoU) between the two agencies which would streamline their areas of cooperation.

General Marwa congratulated the NYSC chief executive on his appointment and wished him a successful tenure of office.

Advertisement

Speaking earlier, Nafiu paid glowing tributes to the towering achievements that stood as footprints of Marwa’s time as Lagos state governor and his achievements at the NDLEA among others.

Continue Reading

News

2025 UTME begins at CBT centres nationwide

Published

on

By

The 2025 Unified Tertiary Matriculation Examination (UTME) has begun at various Computer Based Test (CBT) centres in the Federal Capital Territory (FCT) and across states of the federation.

It is believed that more than two million candidates would be writing the examination nationwide.

The examination conducted by the Joint Admissions and Matriculation Board (JAMB) is expected to come to an end on May 5.

At the Sascon International School CBT centre, candidates reported a smooth and hitch-free experience.

Advertisement

One of the candidates at the centre, Emmanuel Ezegwu, said the exam was easier than the previous years.

“This centre is better. I wrote this exam last year but I can tell you that the experience this year is commendable. There are no issues as far as I am concerned with this exam,” he said.

Another candidate, Vitoria Bilala, an 18-year-old candidate and first-timer to write JAMB, described the experience as good, despite feeling a little nervous while writing the exam.

“I quite commend the way they organise the exam because there were little or no hitches in this centre.

Advertisement

“At first, I was having technical problem but immediately I called on the supervisor, it was resolved. I felt nervous being my first time of writing this exam,” she said.

The centre supervisor, Emmanuel Adaji, stated that out of 200 candidates slated for the exam, only 11 were absent.

Speaking on the candidates’ lateness to the centre that resulted to rescheduling of their exam, Adaji advised candidates to arrive early.

He advised candidates coming from neighbouring state to make arrangements to come earlier than the day scheduled for their exams and stay overnight if necessary.

Advertisement

He lauded the synergy between the centre’s management and Nigeria Security and Civil Defence Corps (NSCDC) officers, for maintaining security and orderliness at the centre.

At Christ Academy International School, Gwagwalada, the examination is going on well without any hindrance.

Abdulrahman Salihu, a candidate, who was among the first batch slated for 6:30 a.m., said the exam was okay, including very good functional computer systems.

Another candidate, Charity Danjuma, also corroborated Salihu’s statement, stating that she did not experience any technical issues with the computer system.

Advertisement

Danjuma, who expressed optimism that she would gain admission with this year’s exam, said that she had written UTME for the fourth time.

Stephanie Okwori, a candidate at Future Gate Academy, Ado in Nasarawa state, described the exam as “stress-free,” commending the officials for rendering assistance, as well as providing a conducive environment.

Okwori noted that the questions were manageable, allowing her to finish within the allotted time.

Joseph Joshua, another candidate at Future Gate Academy, shared a similar experience.

Advertisement

“The biometric verification started by 6:30 a.m., which gave me enough time to settle in before the exam,” he said.

Joshua also commended the calm atmosphere and professional conduct of the invigilators, expressing optimism about his performance.

However, Clara Ajayi, a candidate at Bingham University’s exam centre, reported a minor delay in seating arrangements.

(NAN)

Advertisement
Continue Reading

News

2027 done deal, more governors joining APC – Ganduje declares

Published

on

By

The ruling All Progressives Congress APC on Thursday declared that the 2027 general election was already a “done deal”, vowing to win all off-season elections before then.

National Chairman of the party, Dr Abdullahi Ganduje disclosed this when he formally received some defectors from the Kano State chapter of the New Nigeria Peoples Party NNPP, led by the Senator representing Kano South, Senator Kawu Ismaila.

Ganduje also confirmed that the party is expecting more governors from the opposition parties to join the APC fold very soon, following Wednesday’s defection of the Delta state Governor, Sheriff Oborevwori to the APC.

Aside Senator Kalu, other politicians from Kano state who joined the APC include; Hon. Kabiru Alhassan Rurmum, Representing Rano/Kibiya in the Federal House of Representatives, Hon. Abdullahi Sani Rogo, Rt. Hon. Zubairu Hamza Massu, member Kano State House of Assembly, Dr. A B. Baffa Bichi, former Secretary to the State Government, Hon. Mohd Digol, a former Commissioner in Kano state government, Hon. Abbas S. Abbas, a former Commissioner in Kano state, Hon. Sha’aban Ibrahim Lawal, a former governorship candidate, Hon. Badamasi Ayuba Danbatta, a former member, House of Representatives, and Hon. Idris Dankuwa, also a former member, House of Representatives.

Advertisement

Speaking after a closed-door meeting with the new entrants, Ganduje said; “In APC, we believe in our president, Asiwaju Bola Ahmed Tinubu. We believe in his economic reforms, we believe in his Renewed Hope Agenda and part of the political renewed hope agenda is trying to canvass for more followership into the party.

“We started by democratically electing governors, especially in Edo State, who was in PDP, we elected, we succeeded in winning the election, he is now in APC.

“Now, there is another channel that has been opened through advocacy, through dialogue, through convincing some highly and even elected governors to come into the party and you can see what has happened now.

“The governor of Delta State is now in APC, including his cabinet, including all the members of the state assembly and House of Representatives, and the timber and calibre of PDP, now in APC, even including the former vice presidential candidate coming into our party.

Advertisement

“So, you can see that we are expanding.
I don’t want to reveal our secret, but what I am telling you is that for APC, 2027 is a done deal.”

Asked about reports of possible defection of some state governors into the APC, Ganduje said, “more governors are coming into APC, I assure you, and places where we have election, APC will by God’s grace, win those elections”.

On his part, Senator Kawu, who led the delegation said; “This is the coming together of likeminds in NNPP Kano state.”

On the value he is bringing into the APC, Kawu said; “I will refer you to 2023 general election. Go and check the results. I mean the Presidential, Senatorial, and House of Representatives elections, where we contested the same day, the same polling unit with Kwankwaso. That will give you the answer to your question.

Advertisement

You will see my result, his (Kwankwaso) result, and various members of the House of Representatives on that very day.

“Then the subsequent election, the senatorial and state assembly members, you will see the difference and you will understand what we are telling you”, he explained.

Continue Reading

Trending

Copyright © 2024 Naija Blitz News