The Crude Oil Refinery-Owners Association of Nigeria (CORAN) has announced that its members have not yet begun receiving payments for crude oil sales in the local currency, naira.
Public secretary of CORAN, Echie Idoko, revealed this situation during an interview with Channels TV.
This delay follows President Bola Tinubu’s recent approval, through the Federal Executive Council (FEC), for the sale of crude oil to the Dangote refinery in naira. The aim of this decision is to streamline the process and improve access to the $19 billion petrochemical plant.
Idoko pointed out that while the announcement was promising, effective implementation requires further steps. He stressed the need for detailed regulatory guidelines to facilitate the process of buying and selling crude oil 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. Although the pronouncement was welcome, there are still a few steps needed for it to become implementable. It was just a Federal Executive Council statement. There needs to be a regulatory framework to enable us to access crude in naira,” Idoko said.
He further explained that regulatory guidelines are essential to outline the quantity of crude oil available in naira and the procedures for accessing it. Idoko expressed hope that the government will soon engage with stakeholders to resolve these issues, highlighting the importance of including industry members in the process.
Earlier reports from NATIONAL ECONOMY had noted that the FEC’s approval aimed to ensure the availability of crude oil to Dangote’s refinery and alleviate pressure on the foreign exchange market. The new directive will see 450,000 barrels of crude designated for domestic consumption sold to Nigerian refineries in naira, with Dangote Refinery serving as the pilot project.
Additionally, the refinery will sell its refined products in naira, facilitating smoother transactions in the mid and downstream sectors. This move comes amid recent disputes between Dangote Refinery and Nigeria’s oil regulatory bodies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which had accused the refinery of selling lower-quality diesel. Aliko Dangote, the refinery’s owner, has denied these allegations, asserting that his plant produces the highest quality diesel in Nigeria.
