The Crude Oil Refinery-owners Association of Nigeria (CORAN) has said that none of their members have begun receiving the sales of crude oil in the local currency, naira.
Echie Idoko, the Public Secretary of CORAN, made this disclosure in an interview with Channels TV on Wednesday.
Recall that President Bola Tinubu through the Federal Executive Council (FEC) approved the sales of crude oil to the Dangote refinery in the local currency to help create a seamless approach to accessibility and supply to the $19 billion petrochemical plant.
Idoko, however, said that despite the pronouncement, steps needed to be taken to ensure the implementation of the new mandate by FEC.
According to him, there have to be guidelines from the regulatory agencies that will explain the process of accessibility of crude in naira.
“We have mentioned where we are on several fronts. As it stands right now, none of our members have started uplifting crude oil in Naira. Of course, we did mention that the pronouncement was welcoming, but there were still a few steps that had to be taken for it to become implementable. It was just a federal executive council statement. There is a need to be a regulatory framework that would enable us to access crude in Naira.
“There has to be a guideline as to how we can access. We have to know exactly what quantity is coming to us in Naira. All those details have to be worked out. We know it’s a recent pronouncement, so we will give the government the benefit of the doubt.
“We are hoping that in the coming days, there will be sitting down with us as stakeholders because you can’t shave a man’s head in his absence. We are hoping that our members should be part and parcel of the processes,” the CORAN chairman said.
Backstory
Nairametrics had earlier reported that the Federal Executive Council (FEC) approved the sale of crude oil to the Dangote refinery in Naira to ensure availability and accessibility to the plant as well as reduce the pressure on the foreign exchange market.
The approval, which came following weeks of conflicts between Dangote and the oil and gas regulatory agencies, provides a lifeline for the refinery to get crude from NNPC in local currency.
The new directive will see the 450,000 barrels of crude earmarked for domestic consumption sold to Nigerian refineries in Naira, with Dangote Refinery serving as the pilot for this initiative.
In addition, the $19 billion refinery will also sell its refined products to Nigeria in naira, ensuring a seamless transaction process in the mid and downstream sectors.
What you should know
- The Dangote Refinery has come into conflict with Nigeria’s oil regulatory bodies, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in recent times.
- The latter accused the oil company of selling low quality diesel, inferior to the ones imported into the country.
- On his part, Aliko Dangote, the owner of the refinery, has vehemently denied these allegations, adding that his plant produced the best quality diesel in Nigeria.
- Following this controversy, President Tinubu announced the approval of sales of crude oil to Dangote refinery in Naira, to ensure availability to the plant.
