Economy
Dangote Refinery Seeks Naira-For-Crude Policy Expansion
By Adedapo Adesanya
The Dangote Petroleum Refinery has called for the expansion of the federal government’s Naira-for-Crude policy, describing this initiative as a strong indication of support for domestic refining.
The newly appointed Managing Director of the oil facility, Mr David Bird, made this call during a press briefing at the refinery complex in Lagos, noting that the scheme has significantly contributed to stabilising the the local currency and should be expanded in Nigeria’s overall economic interest.
“I think it’s a great testimony to the level of government support that we get,” he said on Wednesday.
According to Mr Bird, between 30 and 40 per cent of the refinery’s current crude feedstock is sourced under the Naira-for-Crude arrangement, with ongoing monthly engagements between the refinery and the Nigerian National Petroleum Company (NNPC) Limited to determine suitable crude grades.
“Let’s say between 30 and 40 per cent of our current crude diet is on the crude-for-naira programme. We engage with NNPC monthly on the grades to buy because there is a lot of variability in the Nigerian crude grades.
“So, we have a preference, we have a wish list, and we continue to work with government support to ensure we get the right allocations,” he explained.
Mr Bird noted that while the refinery is optimised for Nigerian crude, supply volumes fluctuate.
He said approximately 30 per cent of crude supply is obtained through the Naira-for-Crude programme, another 30 per cent from Nigerian crudes purchased on the spot market, while the remaining 40 per cent comes from international grades, adding that even at that, the refinery would welcome an expansion of the policy.
“We would always like to enhance the crude-for-naira programme. Even at that level, five cargoes a month, for example, it has contributed to the stabilisation of the naira enormously,” Bird said, in response to a question.
Mr Bird added that the refinery has the capacity to absorb additional crude volumes if allocations are increased, noting that continued engagement with NNPC and the federal government is ongoing.
“We would have the potential to take further grades if and when, and we continue to engage with NNPC and the government on further increasing that,” he said, pointing to global geopolitical uncertainties as a reason Nigeria should prioritise domestic crude supply.
“It is in the country’s interest to supply domestically, because geopolitically it’s a very volatile situation. If Venezuelan crude comes back on the market, for example, it is in Nigeria’s interest to secure an offtaker through domestic refining,” he said.
The Naira-for-Crude policy, which began in October 2024, allows local refineries to purchase crude oil from NNPC in Naira instead of US Dollars. This approach reduces pressure on foreign exchange, lowers transaction costs, stabilises the local currency, and strengthens domestic refining capacity.
By Aduragbemi Omiyale
The gantry price of Premium Motor Spirit (PMS), commonly known as petrol, has been cut down by N50 to N1,125 per litre from N1,175 per litre by Dangote Petroleum Refinery.
The refinery confirmed this development via a statement on Thursday to newsmen.
Dangote Refinery described this downward review of the product’s price as a reflection of its ongoing commitment to ensuring price stability, improving affordability, and supporting Nigeria’s energy security objectives.
It further said it underscores its responsiveness to prevailing market conditions and its efforts to pass on cost efficiencies to downstream partners and consumers.
In the statement, the company said it remains focused on its broader mission of contributing to economic growth, enhancing fuel availability, and fostering a more competitive and sustainable petroleum sector in Nigeria.
By Adedapo Adesanya
Crude oil prices rose more than 2 per cent on Thursday after a cargo vessel was hit by an unknown projectile near Oman, putting an evacuation effort for ships from the key Strait of Hormuz on hold.
Brent futures gained $1.52 or 2.1 per cent to settle at $75.26 a barrel, while the US West Texas Intermediate (WTI) crude chalked up $1.58 or 2.3 per cent to trade at $71.92 per barrel.
The flow of oil and gas has been disrupted since the joint US-Israeli attacks on Iran at the end of February, but the agreement between the US and Iran to end the war has allowed the resumption of traffic through the crucial strait.
The United Nations International Maritime Organisation on Thursday paused its effort to shepherd ships and seafarers through the strait after the cargo ship reported a suspected attack. This reawakened concerns about the worldwide flow of oil.
Reuters reported that Iran fired on the cargo ship as it attempted to pass through the strait after Iranian authorities said the security of vessels passing outside designated Hormuz routes is not guaranteed.
Previously, crude shipments through the strait rose to their highest since the start of the war on Wednesday. Before the war, about 20 per cent of world oil supplies passed through the Strait, located between Iran and Oman.
Key fuel oil producers Iraq, Saudi Arabia, and Oman have moved to increase shipments from ports outside the Persian Gulf. Middle Eastern fuel oil exports are set to jump by 20 per cent from May to about 508,000 barrels per day in June.
US Secretary of State Marco Rubio told Gulf allies on Thursday that any deal with Iran would take their interests into account, as he wrapped up a Middle East trip aimed at winning over regional partners with deep reservations about the preliminary accord.
The US and the six-member Gulf Cooperation Council (GCC) said a lasting peace would mean addressing Iran’s ballistic missiles, drones and support for proxy groups. However, the US also threatened that if Iran threatens or blocks ships in the strait, there will be a “problem.”
The Wall Street Journal reported that Iran estimates charging for security, safety and environmental services in the strait, which would bring in $40 billion a year for the states involved.
In Venezuela, thousands were feared dead after two powerful earthquakes affected the capital, Caracas. The quakes could slow the increase in Venezuelan oil exports expected by US President Donald Trump’s administration after it captured Venezuela’s President Nicolas Maduro in January.
By Adedapo Adesanya
The Eggs Sellers and Distributors Association of Nigeria (ESDAN) has kicked against the proposed plan involving the production of egg powder to tackle the glut of eggs.
The National President of ESDAN, Mrs Olaide Graham, made the position clear in an interview with the News Agency of Nigeria (NAN) this week.
Egg glut occurs when egg production exceeds consumer demand, resulting in a surplus that often forces farmers to sell at reduced prices to avoid spoilage.
The Lagos State Government recently announced plans to establish an egg powder processing facility as part of efforts to address seasonal egg glut in the poultry sector.
Mrs Graham described the initiative as a welcome development but maintained that it would not address the fundamental challenges facing the industry.
“The establishment of an egg powder factory in Lagos to address the egg glut situation will have a positive impact if it is properly implemented and the product meets market standards.
“It could help reduce waste and, to some extent, stabilise prices temporarily.
“However, egg powder may not be widely accepted as a substitute for fresh eggs in this part of the country because of differences in taste, texture and consumer perception.
“Many consumers still regard fresh eggs as more nutritious,” she said.
According to her, the major issue is identifying and addressing the root causes of the egg glut rather than focusing solely on processing surplus eggs.
“We have a population of over 200 million people. Why should there be an egg glut?
“We need to examine what farmers, distributors and other stakeholders are not getting right and provide the necessary support.
“Egg powder is not the cure for egg glut in Nigeria. Stakeholders should come together to identify sustainable solutions,” she said.
Mrs Graham noted that egg powder could serve as a raw material for the production of other goods, but should not be viewed as a long-term remedy for the challenge.
She emphasised the need for improved distribution systems across the egg value chain.
“Effective distribution can go a long way in addressing the problem.
“We should remember that Lagos distributes not only eggs produced within the state but also eggs brought in from other parts of the country.
“In every challenge, there is always a solution, but egg powder is not the major solution to egg glut,” she said.
The ESDAN president also dismissed concerns that egg distributors could be negatively affected by the proposed factory.
“Distributors have nothing to fear because Nigerians are accustomed to consuming fresh eggs.
“The number of consumers who will continue to prefer fresh eggs will still be higher.
“Even if egg powder production affects access to fresh eggs, there will still be ways to address that challenge.“If the purpose of producing egg powder is to reduce glut, then that is why distributors have joined the conversation,” she said, according to the news agency.
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