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In Nigeria: FEC directs sale of Nigeria’s crude oil to Dangote, other local refineries in naira

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reported the dispute between Dangote refinery and regulators in the oil sector over crude supply to the refinery and importation of refined petroleum products.

 

The Federal Executive Council (FEC) has directed Nigerian National Petroleum Company Limited (NNPC Ltd) to engage Dangote refinery and other local refineries with a view to resolving the dispute over the sale of crude oil to them.

The FEC, presided over by President Bola Tinubu, also directed that such crude oil sales to the refineries be made in naira and that the refineries, located in Nigeria, should also sell their refined products to the Nigerian market in naira.

 

 

The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, who disclosed this on Monday in Abuja while speaking to State House correspondents at the end of the council meeting said the refinery is now approaching steady-state operations noting that it requires approximately 15 crude cargoes per month, translating to an annual supply cost of $ 13.5 billion.

 

He explained that the NNPC Ltd has committed to supplying four (4) crude oil cargoes monthly, leaving the remainder to be sourced from international traders.

Currently, he said, these transactions are conducted in dollars, significantly straining Nigeria’s foreign currency liquidity. He added that strategic intervention is required to leverage the Dangote Refinery to stabilise Naira exchange rates and restore price stability.

To manage the significant foreign exchange (FX) needs for local refineries and petroleum marketers, Mr Adedeji said it is proposed that “local refineries’ crude oil purchases from NNPC Ltd be denominated” in Naira at a fixed exchange rate for a minimum period of six months.

“Refined product sales to approved local petroleum marketing companies be conducted in Naira at the same fixed exchange rate,” he said.

“A settlement bank (e.g., Afreximbank) facilitates both trades by providing guarantees to NNPC Ltd to cover the payment risk of local refineries and to Nigerian commercial banks for the payment risk of petroleum marketing companies. This approach will eliminate the need for international letters of credit, saving Nigeria substantial amounts of USD,” he said.

The proposed scenario, according to him, offers reduction in foreign exchange pressure, as the previous scenario utilized $660 million per month, totaling $7.92 billion annually.

With the proposed scenario, he said expenditures are projected to decrease to $50 million per month, equating to $600 million annually.

“This reduction will significantly alleviate the pressure on foreign exchange reserves, leading to an annual savings of $7.32 billion representing 94 per cent, reduced trade finance costs with annual savings of $79 million in local currency costs through Afreximbank’s payment undertakings for bilateral trades and stabilised petroleum product prices as the forward-selling of crude oil and refined products at a fixed exchange rate unaffected by exchange rate fluctuations will stabilise pump prices,” he noted.

He added that stabilising petroleum prices will likely drive the appreciation of the Naira, as petroleum imports account for 30 per cent of Nigeria’s FX demand.

Mr Adedeji said stable petroleum prices will lower transportation costs, reduce food price inflation and positively impact interest rates and dollar/Naira exchange rates.

“This strategy will eliminate government control and drive independence of the market as it aims to eliminate government intervention in the management of domestic petroleum prices, further facilitating competitiveness and allowing for greater market predictability and stability.

“This model, subject to the settlement bank’s (e.g., Afreximbank) credit approvals, can be replicated for other refineries, facilitating the trade of 445,000 barrels reserved for domestic consumption and achieving energy security. This further ensures that strategic reserves are pegged at tolerable prices driving improved economic stability.”

Background

In recent months, the Dangote Group and the petroleum regulators in Nigeria have been at loggerheads over the control of the petroleum downstream market.

Last month, the Dangote Group accused some international oil companies of sabotaging the plant’s operations by either refusing to supply crude or offering oil at higher premiums compared to market prices.

It also clashed with the regulators of the Nigerian energy industry, including the Nigerian Midstream and Downstream Regulatory Authority, which claimed diesel from the refiner has sulphur content levels above the allowed threshold. The regulators also accused Dangote of seeking to be a monopoly.

READ ALSO: EDITORIAL: Resolving the feud between Dangote and oil sector regulators

In refuting the allegation, Mr Dangote took lawmakers visiting the refinery to a laboratory within the plant, where diesel from the refinery was tested alongside two different samples from imports.

The results showed the sample from the refinery’s diesel had much lower sulphur than the imported ones.

Business

NNPC Slashes Petrol Price

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The Nigerian National Petroleum Company Limited (NNPC) has reduced petrol prices at its retail stations in Lagos, Abuja, and other states by at least N20 per litre.

 

Current pump prices now range between N895 and N965.

In Lagos, the price dropped from N910 to N890 per litre, while in Abuja, it moved down from N940 to N920 per litre.

Other stations, including Ardova, MRS, and First Royal, are now selling petrol at N890 per litre.

 

Across the country, new pump prices for major states are as follows: Abuja N920, Lagos N890, Abia N912, Adamawa N940, Akwa Ibom N910, Anambra N905, Bauchi N915, Bayelsa N900, Benue N935, Borno N945, Cross River N910, Delta N900, Ebonyi N928, Edo N910, Enugu N912, Gombe N965, Imo N928, Kaduna N935, Kano N935, Kwara N905, Nassarawa N935, Niger N955, Ogun N905, Ondo N905, Osun N895, Oyo N905, Plateau N900, Rivers N895, Sokoto N935, Taraba N950, Yobe N950, and Zamfara N945.

 

Depot prices have also been adjusted following the arrival of fresh petrol shipments.

 

In Lagos, depots such as Wosbab, Chipet, Integrated, and Bovas now sell at N836 per litre, with Aiteo charging N835. Port Harcourt depots including Masters, Liquid Bulk, and Bulk Strategic reduced rates to N853, while Warri depots adjusted prices between N846 and N848.

 

Calabar depots also lowered costs, with rates ranging from N846 to N849 per litre.

 

The reduction comes after Dangote Refinery lowered its gantry price to N840 per litre.

Diesel prices also fell, dropping from N950 to N910 per litre.

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Egbu Community That Powers South East Battles Months Of Darkness

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Egbu community in Owerri North Local Government Area of Imo State has endured months of crippling electricity outages, even as it hosts a Transmission Company of Nigeria (TCN) facility supplying and distributing power to the entire South-East.

Residents describe the situation as cruelly ironic: while electricity flows from their town to cities across five states, Egbu itself receives barely two hours of power daily.

The blackout has intensified amid a standoff between the Imo State government and the Enugu Electricity Distribution Company (EEDC) over the proposed Orashi Electricity Distribution Company.

Governor Hope Uzodimma announced at the recent Imo Economic Summit that Orashi Electricity Distribution Company would commence operations in December, promising improved supply and stability across the state.

Before this announcement, the Imo State government accused EEDC of deliberately shutting down power in retaliation for the creation of the new distribution company. Commissioner for Information and Strategy, Declan Emelumba, insisted the state’s intervention aims solely to improve electricity delivery and protect residents.

EEDC, through its Head of Communications, Emeka Eze, denied the claim, asserting the company has no intention to disrupt supply. It also noted that agents of the state government had previously interfered with its Egbu transmission facility, disrupting operations.

Caught in the crossfire, Egbu remains the worst affected, with prolonged blackouts crippling businesses and daily life. Residents say the 11KV Egbu feeder, which supplies electricity locally, has been in poor condition for years, severely limiting power availability.

Augustine Njoku, a youth leader in Mpana area, said, “That 11KV feeder has been bad for years. EEDC refuses to fix it, and that is why we are in darkness.”

Small businesses are struggling. Uche Onwuka, who runs a football viewing centre at Ishiuzor village, said unreliable power has driven away customers. “I spend everything on petrol; there’s no profit left,” he lamented.

Restaurant owner, Ms Augusta Igwe added, “Running my generator eats up all my profit. How could two hours of electricity supply improve my business. This is unacceptable. I can no longer cope.”

Am Electronics trader, Gibson Amuneke said he was forced to close his shop: “There is no business without electricity.. This is very insensitive. When you go to other parts of the State, there is reasonable power supply but here in Egbu, which hosts the Transmission. station, we hardly get supply”

Residents also complain of high estimated electricity bills despite scant supply, describing it as unfair for a community that hosts a major national power installation.

Efforts to reach EEDC officials about the 11KV feeder and residents’ claims went unanswered. With Orashi Electricity Distribution Company set to begin operations in December and the EEDC-Imo standoff unresolved, Egbu residents remain trapped in darkness, questioning how a community that powers the South-East can be left in such neglect.

 

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Boris Johnson Says He Feels “Perfectly Safe” in Nigeria, Praises Imo State’s Progress

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Former British Prime Minister Boris Johnson has expressed confidence in Nigeria’s security, saying he feels perfectly safe during his visit to the country. His remarks come amid ongoing reports of insecurity in various parts of Nigeria, making his statement a notable endorsement of the nation’s stability in certain regions.

Johnson made the declaration on Thursday, December 4, 2025, while addressing participants at the Imo State Economic Summit 2025 in Owerri, the state capital. He acknowledged having read travel advisories and news reports highlighting security concerns prior to his trip but said his experience has been reassuring.

He said he feels perfectly safe in the country and emphasized that the summit environment and local hospitality contributed to his sense of security. He also asked the audience if they felt safe, receiving an enthusiastic affirmation.

During his visit, Johnson commended Governor Hope Uzodimma and the Imo State Government for their development initiatives, particularly efforts to provide 24-hour electricity. He highlighted the potential of Nigeria as a hub for innovation and economic growth, noting the opportunities presented by emerging technologies such as artificial intelligence.

While his statements have been welcomed by some as a boost to international confidence in Nigeria, analysts caution that the former prime minister’s experience reflects only a controlled and secure environment within Imo State. Several parts of the country continue to face challenges, including banditry, communal conflicts, and kidnappings.

Nonetheless, Johnson’s visit and remarks are significant, sending a positive message to investors and global observers about Nigeria’s potential for stability and progress. They also underscore the contrast between localized experiences of safety and broader security challenges across the country.

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