The details were contained in internal documents from the NNPCL, submitted at the Federation Account Allocation Committee meetings.
The documents showed that crude supplies to Dangote refinery amounted to N107.44bn within the three-month period.
The crude was sold at unit prices ranging from $74.87 to $80.34 per barrel, using exchange rates between N1,501.22/$ and N1,562.91/$.
The transactions were executed using exchange rates recommended by the African Export-Import Bank.
One of the documents seen by The PUNCH read, “The Dangote domestic lifting is payable in naira based on Afrexim Bank advised exchange rate.”
The sales formed part of the naira-for-crude deal introduced by the Federal Government to ensure domestic crude supply to the 650,000-barrel-per-day Lagos-based refinery.
As part of moves to reduce the strain on the US dollar and guarantee the price stability of petroleum products, the FEC in July 2024 directed the national oil company to sell crude oil to Dangote refinery in naira, rather than in the US dollar, for an initial phase of six months.
The sale of crude oil and refined petroleum products in naira to local refineries commenced on October 1, 2024, to improve supply, save the country millions of dollars in petroleum products imports, and ultimately reduce pump prices.
However, in March, Dangote refinery said it had temporarily halted the sale of petroleum products in naira.
The refinery said the decision to halt sales in naira was “necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars”.
After an initial delay, the Federal Executive Council eventually directed the full implementation of the suspended naira-for-crude agreement with local refiners.
It stated that the initiative with local refineries is not a temporary measure, but a “key policy directive designed to support sustainable local refining.”
Following the continuation of the naira-for-crude deal, the Dangote refinery announced a further reduction in the price of Premium Motor Spirit, popularly known as petrol.
The refinery slashed its ex-depot price to N835 per litre, marking its third price cut in less than six weeks.
The latest adjustment reflects a 3.5 per cent decline in the ex-depot rate, as the refinery continues to lower costs to reflect the naira-denominated crude supply framework agreed under the renewed naira-for-crude arrangement.
Punch
