Business

Dangote, NNPCL back to negotiation over Naira-for-crude deal

Published

1 month ago

March 11, 2025

Alhaji Aliko Dangote the CEO of Dangote Group and Group Managing Director of NNPC Mele Kyari

Dangote, NNPCL back to negotiation over Naira-for-crude deal

The Nigerian National Petroleum Company Limited (NNPCL) on Monday said discussions are currently ongoing towards emplacing a new naira-for-crude contract with local refiners.

The company reacted after the reported collapse of the naira for crude deal between the NNPCL and the local refiners, prompting marketers, stakeholders and Nigerians to express mixed feelings.

The deal, which lasted barely six months, was said to have collapsed, raising fear of increase in prices of petroleum products and further depreciation of naira against the dollars.

Newstrends 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.

But findings by our correspondent indicated that the deal which was signed in October 2024 and is expected to lapse at the end of March 2025 might have collapsed.

Sources said this was due to “irreconcilable” differences bothering on product delivery and other issues.

Daily Trust reports that 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.

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However, findings showed that there has been a consistent low supply of allocations to Dangote Refinery, forcing it to resort to importation.

Daily Trust earlier reported that there has been a sharp decline in the volume of crude allocated to the Naira-for-Crude scheme.

A document reviewed late January indicated 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 shortfall has left Dangote Refinery with no option than to import crude oil from outside Nigeria. It recently received 12 million barrels of crude oil from the United States.

There was no official comment yet from Dangote on the reported collapse of the naira for crude deal but a source close to the refinery confirmed that it is true. He did not provide further clarification.

But the NNPC Limited while clarifying the development said it has noted recent reports circulating on social media regarding the alleged unilateral termination of the crude oil sales agreement in Naira between NNPC and Dangote Refinery.

Chief Spokesperson of the NNPC, Olufemi Shoneye said, “To clarify, the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025.

“Discussions are currently ongoing towards emplacing a new contract. Under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024. In aggregate, NNPC has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023.

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“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions…”

Experts, Nigerians lament collapse of deal

There are concerns among Nigerians, experts and marketers over the negative implication of the deal on fuel supply and the local currency.

They said the arrangement ordered by the president was responsible for the relative stability recently recorded in the foreign exchange. They said the development would further trigger depreciation of the naira resorting to an increase in prices of petroleum products.

A petroleum industry player, Akinrinade Akinade in a chat with our correspondent warned that the development would affect the prices of petroleum products.

He called for the intervention of President Tinubu who initiated the scheme in the first place.

He said, “I read it like you. It has not been confirmed yet. It was the President that ordered the NNPC to do it. It is not final.”

According to him, the scheme was felt largely “in the value of naira to dollar.”

“It was one of the reasons the dollar had some air space. If that one changes, we might see another devaluation of the naira because the refineries would have to be looking for dollars to source their crude. This will also affect the price of petroleum products,” he said.

Dangote, NNPCL back to negotiation over Naira-for-crude deal

Related Topics:crude Dangote Featured Naira NNPCL

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Naira rises to N1,618/$ in parallel market

Published

19 hours ago

April 16, 2025

Trends Admin

Naira rises to N1,618/$ in parallel market

The naira yesterday appreciated to N1, 618 per dollar in the parallel market from N1,620 per dollar on Monday.

Insurance

Lasaco Assurance Plc attains ISO/IEC 27001:2022 Certification for Information Security Management

Published

20 hours ago

April 16, 2025

Trends Admin

Lasaco Assurance Plc

Lasaco Assurance Plc attains ISO/IEC 27001:2022 Certification for Information Security Management

Lasaco Assurance Plc, one of the leading insurance companies in Nigeria, is pleased to announce that it has successfully obtained the ISO/IEC 27001:2022 certification, a globally recognized benchmark for Information Security Management Systems (ISMS).

This certification comes after a thorough and detailed re-certification audit, validating its commitment to upholding the highest standards in information security and cybersecurity.

The ISO/IEC 27001:2022 certification highlights Lasaco’s ongoing efforts to protect confidential information, manage risks, and enhance its approach to information security, aligning with global best practices.

Speaking on this new development, the Managing Director, Lasaco Assurance Plc, Mr. Razzaq Abiodun, said, “We are incredibly proud of this achievement, which demonstrates our dedication to maintaining the highest standards of operational excellence and continuous improvement.

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“In today’s digital age, ensuring the safety and security of sensitive information is of paramount importance, and this certification reaffirms our commitment to being a trusted and responsible organization.”

ISO/IEC 27001:2022 offers a structured framework for managing and securing critical business information, ensuring that all aspects of the organization’s information security are addressed through proactive risk management. This certification affirms Lasaco Assurance’s robust commitment to safeguarding sensitive data against emerging cyber threats.

“Moving forward, we remain dedicated to ensuring the highest level of information security, compliance, and excellence in all our operations,” the Head of IT, Lasaco Assurance, Mr. Dimeji Ogundele said.

The company extends its deepest gratitude to its entire team, clients, and partners whose support was pivotal to achieving this certification. Lasaco Assurance Plc is a composite insurance company, providing a wide range of insurance solutions.

With a rich history of trust, innovation, and customer satisfaction, Lasaco continues to deliver reliable and cutting-edge services to individuals, businesses, and government institutions.

Lasaco Assurance Plc attains ISO/IEC 27001:2022 Certification for Information Security Management

Business

5 facts about trending digital trading platform, CBEX

Published

2 days ago

April 15, 2025

Trends Admin

5 facts about trending digital trading platform, CBEX

Investors have been left counting their losses after digital trading platform, China Beijing Equity Exchange (CBEX) crashed on Monday, April 14.

Many distraught investors took to social media, especially X and TikTok, to bemoan their losses, which was estimated at N1.3 trillion.

Following reports of the platform’s crash, some investors on Tuesday broke into CBEX’s office in Oke Ado area of Ibadan, Oyo State and looted furniture, electronics and other valuables.

Facts about CBEX and its operations:

1. CBEX is a digital trading platform that promised investors 100% profit within 30 days, by trading digital assets. Its purported goal was to create a secure, transparent environment for transactions.

2. CBEX reportedly attracted around 300,000 users, majority of whom are Nigerians, despite not being registered with Securities and Exchange Commission (SEC), making its operations illegal under the Investment and Securities Act (ISA) 2025. CBEX’s CEO, Yahaya Ibrahim claimed the platform was a registered Canadian crypto exchange, but no evidence supported this, and operations were primarily Nigerian-focused.

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3. Around April 9, investors reportedly faced withdrawal failures as funds in their wallets vanished. CBEX attributed the withdrawal issues to a “security breach” and demanded additional deposits for “verification”. The verification options included $200 fee for $2,000 wallet balance and $100 for $1,000 wallet balance.

4. The crash reportedly affected over 300,000 users, with estimated losses exceeding $840 million (N1.3 trillion), devastating investors, some of whom lost life savings or loans. Cryptocurrency expert and security analyst, Taiwo Owolabi said available data indicated that the funds were moved to a TRX address: (TDqSquXBgUCLYvYC4XZgrprLK589dkhSCf). He noted that a total volume stolen so far in USDT is $847 million and likely to increase.

5. The Securities and Exchange Commission (SEC) has continued to warn the public against investing in unregistered platforms like CBEX, citing risks of fraud and lack of investor protection. Prior to CBEX’s crash, SEC stated that ISA 2025 signed by President Bola Tinubu makes it an offence for any entity to operate an online forex trading platform or provide related services without prior registration with the commission.

“By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services.

“Any business entity with the plan of setting up a business in any of these areas is advised to visit the HOD DRM Department of the commission for further direction on how to register with the commission to avoid sanctions,” SEC said.