The Federal Government has moved decisively to quell mounting anxieties over Nigeria’s petroleum product supply chain, assuring the nation that the supply of refined petroleum products will remain stable despite recent high-stakes disputes involving the Dangote Petroleum Refinery.
The assurance followed an emergency meeting of the Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative, chaired on Sunday by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
The meeting focused on two critical and intertwined issues that had threatened stability in the downstream sector over the weekend: the temporary suspension of Naira-based fuel sales by the Dangote Refinery and the escalating industrial dispute with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
Naira for crude Steering Committee confirmed that the purported suspension of the Naira-for-crude oil arrangement by the Dangote Refinery has been “amicably resolved.”
Barely 24 hours after the refinery had temporarily halted the sale of Premium Motor Spirit (PMS/petrol) in the local currency, citing the exhaustion of its Naira-crude oil allocation limits. The move had sparked fears of potential fuel price hikes and increased pressure on the Naira.
The Committee, which includes high-level representatives from the Nigerian National Petroleum Company (NNPC) Ltd., the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS), and Afreximbank, forcefully reaffirmed that the crude oil for Naira initiative will continue as a core policy directed at bolstering energy security and insulating domestic refining from foreign exchange volatility.
The second major point of discussion was the highly sensitive industrial face-off between PENGASSAN and the Dangote Refinery management. PENGASSAN had recently escalated the dispute, reportedly issuing a directive to its members to cut off crude oil and gas supplies to the facility following the alleged mass dismissal of over 800 Nigerian workers who joined the union.
PENGASSAN accused the refinery of anti-labour practices and the unilateral sacking of staff. The Dangote Group, in turn, described the union’s order to shut down supplies as a “brazen display of lawlessness and criminality” that amounted to economic sabotage.
In response, the Federal Ministry of Finance stated that all outstanding issues, “particularly the dispute between PENGASSAN and Dangote Refinery, are being addressed with urgency and in good faith.” This commitment signals a proactive government effort to mediate the labour crisis and prevent a disruption of operations at the 650,000 barrels per day facility.
Commitment to Market Stability
The meeting was attended by key economic figures, including the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, and FIRS Chairman, Mr. Zacch Adedeji (who chairs the Technical Committee), alongside representatives from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Dangote Refinery itself.
