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FG halts NNPCL’s move to cancel crude deal with Dangote – FG
The Federal Government on Tuesday stepped in to halt the move by the Nigerian National Petroleum Company Limited (NNPCL), from ending its deal with Dangote Refineries Limited to purchase crude oil in Naira instead of dollars, a move which sent worries across the country.
Against the backdrop of apprehension by Nigerians that the recent reliefs they have been enjoying due to the marginal reduction in the prices of the Premium Motor Spirit (PMS), otherwise known as petrol from Dangote would be short-lived as a result, the government, said the Naira-for-Crude deal between would remain intact.
Femi Soneye, NNPCL spokesman, who confirmed the move, had explained on Monday that the deal signed with Dangote, the first private refinery in Africa, in October last year, was for six months and due to be renegotiated by the end of March, 2025.
But Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), at a meeting with the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), said the agreement, approved by the Federal Executive Council (FEC), was still in effect.
Stressing that though the NNPCL operated a private sector model, the government still had limited control over major decisions, adding that operators in the oil and gas industry were free to transact business in any currency.
Hear him: “Government is not canceling it. What was taken to council was a pilot scheme where they said NNPC should be selling crude in Naira to Dangote Refinery. We’ve always encouraged people to buy crude in whatever currency. Even if you buy in Naira, it’s going to be at a prevailing exchange rate. And I do know that people have been buying crude to refine in their respective local refineries in Naira.
“The dispute has always been, what is the exchange rate? Which the government is not involved. It is purely private sector issue. If you are in the upstream and you have a modular refinery next to you and the man wants to buy crude, it’s between two of you that would negotiate and agree on what price. And the person may decide to pay you either in dollars or in Naira.
“We’ve always done that. So, it is not true that the scheme is canceled. Not at all. That one that was taken to FEC was a scheme specifically for Dangote Refinery and they said orders will also follow. And that was why that one didn’t include the crude for Naira from IOCs and other operators. It was basically only NNPC.
“But that doesn’t mean that Dangote doesn’t buy crude from other operators. They buy. But that Naira for crude scheme was basically between NNPC and Dangote Refinery.”
The Minister explained that in order for NNPC to operate and compete with other national oil companies across the globe, the Petroleum Industry Act made NNPC a private sector driven company so that the country can maximize the opportunities existing in the industry.
“And so NNPC take decisions that they feel is best for Nigeria in the industry with limited government interference. That doesn’t mean that we can’t call them to order from time to time because they are a national oil company.
“But the point I’m making here is NNPC has a measure of independence now so that they can make proper business decisions that will be best for Nigerians.”
Expressing the commitment of the government to continue to support the downstream sector, pointing out that there are more opportunities in the downstream than in the upstream sector, he urged the retailers to open Compressed Natural Gas, CNG, points in their outlets because the government saw gas as the country’s transition fuel.
Billy Gillis-Harry, PETROAN President, who expressed the support of the group for the Naira for Crude policy, which he said had helped to reduce the cost of petrol, added that while the group fully supports the local refining of crude oil, it urged the government against placing restrictions on petrol importation.
He argued that petrol import has ensured that local refineries maintained export parity price with consumers benefiting from the competition between imported and locally refined products.
“And also importation of products should no longer be ruled out because we want to be able to compete favourably in a fully liberalized economy where every source of petroleum product is allowed and we as the most critical downstream grassroots participants in the industry should be able to tell you sir, when one product is very good and when one product is affordable and how it can work.
“So we want to advocate that refineries should work and importation also should be considered as one of our sources of getting product. This will drive healthy competition and guarantee that our domestic prices will not be above import parity thereby ensuring the best possible, affordable product with sustainability of petroleum products,” he stated.
He commended Lokpobiri for the achievements recorded in the oil sector since he became Minister in 2023 including improvement in oil production, reduction in oil theft and the coming onstream of local refineries.
Peter Obi, candidate of the Nigeria Democratic Congress (NDC), has given assignment to Nigerians to put all those aspiring to take up political positions in the country through the grill to ascertain their level of integrity, saying it was required as a sine qua non for the job they seek.
Obi, who has been a subject of discussion in the polity since the allegation of corruption was levied against him by Kenneth Okonkwo, spokesman of his campaign in 2023, over the conduct of the party’s primaries to choose candidates for the 2027 general elections, said the grilling must start with his own person.
A guest in an interview on a podcast with Rufai Oseni, a popular television anchor, the former Governor of Anambra State, stated that it was actually for this reason that he had now sworn to see the litigation he instituted against Okonkwo through.
His take is that the Nollywood actor should use the courtrooms to give all the details of bad behaviour, following his threat to expose him fully, after alleging that he was collecting money from aspirants in the said election for electoral favours.
Hear him: “The issue of taking Kenneth Okonkwo to court wouldn’t have arisen if he had stopped at those allegations. But he claimed he still has more he would expose about me in the future. So, I am very happy to take him to court so that he can expose me publicly, alongside other Nigerians. If any of them has any criminal allegations against me, they should bring them to court.
“Not just Kenneth, everybody should now say those things they know that is bad about me or I did that is wrong because it’s good for the system, it’s good for the society,” Obi said.
“So, if you know that when we were in primary school, this man was cheating or didn’t go to the primary school, didn’t go to secondary school, didn’t do, if you know this man has done something criminal somewhere, this is time to bring it up.”
For the umpteenth time, Atiku Abubakar, former Vice President Atiku Abubakar has warned about the dangerous implication of using state institutions, particularly the judiciary to destroy Nigeria’s democracy, saying it is an ill-wind that blows nobody any good.
Atiku, presidential candidate of the African Democratic Congress (ADC), speaking on the heels of Tuesday’s verdict of the Court of Appeal, halting the de-registration order by the Federal High Court, insisted that judicial officers must not lend themselves to any act capable of undermining the nation’s democratic process.
The appellate court had ordered a stay of execution on the order made on Monday by Justice Peter Lifu of the Federal High Court Abuja, for the Independent National Electoral Commission (INEC) to deregister the ADC alongside four other political parties).
A totally scandalised Court of Appeal, sitting in Abuja, had taken umbrage, sparing no hard words in upbraiding the lower court judge, stating that his likes were unfit to sit on the bench.
In a unanimous ruling by a three-man panel, the court held that Lifu’s action was “the highest form of judicial impertinence”, stressing that the Supreme Court previously held that a judge who acted in such a manner.
Describing his conduct as the height of judicial rascality, the upper court, stated: “Courts are enjoined to protect their integrity. This Court has supervisory authority over the trial court.
“The decision of the lower court to proceed with the judgment despite the express order of this court is a brazen violation of the hierarchy of the court and the 1999 Constitution.
This court has the duty to invoke its powers in ensuring that its orders are obeyed. The application for a stay of execution is here yet granted. The enforcement of the judgment is stayed.”
Atiku, who hailed the position of the higher court, which restored his hope to be on the ballot as presidential candidate in the 2027 election, also noted the role of INEC as “significant.”
He said: “I welcome the Court of Appeal’s decision to stay the execution of the Federal High Court judgement seeking the deregistration of our great party, the ADC, and four other political parties. It is particularly significant that INEC itself initiated the application for the stay.
“The development reflects growing public concern over judicial contradictions and politically charged rulings within the judiciary. “Any attempt to undermine Nigeria’s hard-won democracy through judicial manipulation is a grave danger to the Republic. If our democracy suffers further injury, history will demand accountability from those entrusted with dispensing justice.
Outside ADC, Lifu’s order, also included: Action Democratic Congress (ADC), Action Peoples Party (APP), Action Alliance (AA), Accord Party (AP) and Zenith Labour Party (ZLP), similarly slammed for allegedly failing to meet the constitutional requirements for continued registration and participation in elections.
“He is running in contempt of the court. Justice Lifu should be arrested because he is acting in contempt of the court which is a criminal act,” were the exact words with which the African Democratic Congress (ADC), demonstrated its angst over the court ruling on Monday, ordering its de-registration as a political party in Nigeria.
A furious Bolaji Abdullahi, spokesman of the party, told his host while appearing as a guest on Monday’s edition of Politics Today, a public affairs programme on Channels Television that the judge of the Abuja Federal High Court who gave the order was actually playing with fire because of the consequences.
Directly accusing him of playing the script of the All Progressives Congress (APC), to ensure that President Bola Tinubu emerged the sole candidate for the 2027 presidential election, the party spokesman, was emphatic that the plan would not work, as head or tail, ADC must be on the ballot in all the elections.
Hear him: “There is a Court of Appeal order saying don’t hear this case until October 27. So, on what basis? You can’t place something on nothing. The Court of Appeal said don’t act on this until I hear it on October 27. So, on what basis did he deliver the judgement
“So, for us in the African Democratic Congress, what we’re convinced and they know is what they have done has no leg to stand on legally. What they want to do is to create doubts in the minds of the people that this ADC has too many legal cases, can we actually run on this? And to distract us. But we’re not distracted.
“We’re very clear. It was in spite of all they have done since ADC came on board that we ran one of the best and one of the most comprehensive direct primaries in the history of democracy in Nigeria. So, we are strong enough to withstand this. And that’s why I’m saying that we are going to contest in 2027. We’re ADC. We don’t buckle before dictatorship.”
Stressing on the implication of the judgement, which also affected Accord Party (AP), Action Peoples Party (APP), Action Alliance (AA), and Zenith Labour Party (ZLP) for allegedly failing to meet constitutional and electoral performance requirements, following a suit by the National Forum of Former Legislators, he said it portended grave danger.
He added: “We are not surprised. We know that the Nigerian people believe that there is a problem with the judiciary, but what we did not expect is the level of judicial rascality that was demonstrated today.
“What we are saying is that we reject it in its totality, and we are saying that the people behind this are playing with fire. Hundreds, if not thousands, have obtained nomination forms and contested elections and emerged as candidates on the platform of the ADC.”
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