The return of “crude-for-naira” model, by Kola Amzat

Some few days ago, NNPCL announced a cheering to Nigerians that the crude-for-Naira model between the Federal Agency and Dangote Refinery is still very much alive. 

It’s instructive that this wonderful news came few days after the President, Commander-in-Chief of the Armed Forces, Federal Republic of Nigeria, Asiwaju Bola Tinubu, GCFR, reconstituted the Board of NNPCL Limited, with Engr. Bayo Ojulari taken charge as new GCEO, and, Ahmadu Musa Kida as non-executive chairman, with other Board members appointed.  

To the discerning minds, what the new Board have been unmistakably mandated to achieve is to ensure the well-being of millions of Nigerians, as well as facilitate the ease of running business of any size all across the nation, and ultimately, halt the incessant inflationary rate across the board that always associate with increasing in prices of petroleum products, MOST ESPECIALLY, the PMS.

Below is what precipitated the recent undue increase in PMS Price and how the sacked NNPCL were culpable: 

A couple of weeks back, precisely, during the month of March 2025, NNPCL suddenly foreclosed the naira-for-crude business deal between her and Dangote Petroleum Refinery.  

The implications of this was that, the Dangote Refinery started buying crude for Dollar as against Naira, as enshrined in the former business deal arrangement.

Without doubt, the overall negative implication of the sudden policy reversal of NNPCL for the Nigerian people and the economy as a whole was huge.

What’s the grouse of the former Board of NNPCL in the whole saga?

They were displeased and frustrated with Dangote consistent crashing of the price of PMS throughout the year December, and even, during the month of March in the New Year.

This development reached a climax very early in March when the price of PMS went as down, as low as ₦875 and ₦890 in many parts of the country, and even in Lagos, as well as Federal Capital Territory, Abuja, a development that practically forced NNPCL to also adjust their own price in the same direction in other to be relevant, and more importantly, to avoid the backlash from populace, as well as avoid incurring the wrath of government.

Nigerians vividly recall that the crashing of the PMS prices by Dangote Refinery significantly had its multiply effect in the economy, as inflation took a downward trend, and also, provided temporary reprieve for the generality of millions of households, as prices of food materials went down across board.

The then NNPCL Board sorely detested this, as the development put them in the eyes of the storm; they became object of scorn and public opprobrium.

And, then, they resolved to take their pounds of flesh by entering into new business deal of crude-oil-for-dollar with Dangote Refinery.

Meanwhile, Dangote Refinery had no choice other than to respond by adjusting its sales currency to the crude procurement policy, a development that suddenly necessitated the current PMS increase that has been oscillating between ₦965 and ₦1000 all across the country which erstwhile Board foisted on Nigerians before they were swept away.  . 

As at the time the president sacked the GMD, the Chairman and the Board of Directors of NNPCL, several meetings aimed at resolving the impasse, and perhaps, revert to old order of naira for crude oil deal arrangement remained deadlocked, giving room to speculation across the country that key powerful figures within the oil sector who are deeply involve in petroleum importation, are the architect of federal government’s reluctance to revert to the old model.

The justification for this was that, that multiple times that Dangote Refinery crashed PMS prices badly affected the fortunes of this powerful group as they incurred humongous losses, because they were importing fuel in foreign currency-Dollars.

There were even idle talks in some quarters that, why would the president continue to make available license for importation of PMS to members of the oil mafia, when the capacity of Dangote Refinery to produce and supply the domestic market is never in doubt?

To some privileged Nigerians who I won’t mention in this Piece for want of place, they’re of the mischievous opinions that, the presidency are accomplice in NNPCL refusal to buckle under immense pressure to revert to naira-for-crude oil sale. 

They reportedly alleged that, it’s the presidency that was emboldening the NNPCL to maintain the hard stance of Dollar-for-crude oil sale.

But, the crux of this Write-up remains; the President, Commander-in-Chief of the Armed Forces sacking of the erstwhile GMD, Chairman, and the entire Board of the Federal Agency has totally DEBUNKED all the above speculations and allegations against the presidency.

And, more importantly, the declaration of the new Board of the Agency led by Engr Bayo Ojulari that crude-oil-for-Naira deal between them and NNPCL have come to stay and that, ultimately, nothing has changed.

The president had wielded big armor, took his decision and, Nigerian community and business enterprises across the country are better for it.

What a sensitive and proactive president that felt the pulse of the millions of Nigerians, as well as business community and responded accordingly by deliberately halting obnoxious regime of crude-for-dollar, through the major re-shufflement of the NNPCL Board!

This writer has never failed to emphasize to Nigerians that this president came at a time that our nation need to turn the tide.

And, indeed, this prodigiously blessed country have been moving in cycle for a long time and, there is to swiftly rediscover ourselves and begin to conquer.

Of course, this would not be difficult to accomplish. The potentials are there, in their diverse forms.

The population is incredibly huge, with well-informed professionals in different fields scattered all over. The awesome and very predictable weather is there for us to plan. The diversity is there, aplenty. The natural resources are dominant. Oil and gas resources are flowing in unassailable dimension. Mineral resources, about 44, of them scattered all over the country in incredibly commercial quantity. Agricultural resources are flowing in their dominant dimension.

Nigerian is also home to awesome and unbelievably gifted youthful population, that if potentially properly and optimally harnessed could hold the global world hostage, with their skills, intelligence, diverse ideas and knowledge.

Just like USA, Nigerian is blessed with strategic geographical locations, with cities of Lagos, Abuja, Kano, Port Harcourt, Ibadan, Onitsha, Kaduna, Maiduguri, Aba, Enugu, Owerri, Calabar that the nation could turn into IT hubs, industrial hubs, sporting hubs, agricultures hubs, entertainment hubs etc.

Very few countries around the world have such luxury!

Meanwhile, the centerpiece of this Write-up is to repose tremendous trust and confidence in an illustrious and visionary leader who can harness all the above advantages together and deploy them for the purpose of launching our dear country into the midst of greater countries.

This is where this president is relevant. He understands the country in and out. He’s a democrat of gargantuan status. He’s sufficiently conversant with economy, as well as political terrain.

He flows with every group within the country. Of course, he’s not an UNWILLING PRESIDENT as he deployed all resources within his disposal to ascend to the presidency. He was also not a candidate of ESTABLISHMENT, and that is why he takes decisions on the basis of his conviction.

He flows with traditional rulers, top military brass, top clerics, leaders of thoughts, foreign presidents and international community etc.

I’ve highlighted the above to re-emphasize to Nigerians that this president have the mandate of providence to rule and lead Nigeria; its therefore incumbent on the 250 million Nigerian population to align with the nature by allowing Bola Tinubu to be.

All the nocturnal and daylight movements of Atiku Abubakar, Peter Obi, El-Rufai, Rotimi Amaechi, Babachir Lawal, Kayode Fayemi, Rauf Aregbesola and other political foes and adversaries to distract the government, as well as cause confusion are all efforts in FUTILITY.

Their valiant efforts to UNHORSE & UNDO this president are all DEAD ON ARRIVAL.

This group would also be lucky if they and their generations, yet unborn are spared of God’s wraths, because they are challenging Almighty Allah that, He does not know what is doing by giving His mandate for Tinubu to lead the country.

The earlier the group retrace their steps the better!                        

Kola AMZAT (FCA, FCIB, ACS, ACTIN, MBA)

Lagos based Financial & Management Consultants,

09077509348.