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Oil producers counter Tinubu’s order, say selling crude in naira to local refineries will worsen FX volatility

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The Independent Petroleum Producers Group (IPPG) says the plan to sell Nigeria-denominated crude in naira will potentially worsen Nigeria’s currency volatility and foreign exchange receipts.

According to a statement on Monday, Abdulrazak Isa, chairman of IPPG, expressed the group’s concern in a letter to Gbenga Komolafe, chief executive officer (CEO), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

On July 29, the federal executive council (FEC) approved a proposal by President Bola Tinubu directing the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to the Dangote Petroleum Refinery and other refineries in naira.

The sale of crude oil in naira will commence on October 1.

Speaking on the issue, Isa said such a move was not in tandem with the law.

He said a significant source of the government’s royalty and taxation earnings such as petroleum profit tax (PPT), company income tax (CIT), and hydrocarbon tax (HT), which are denominated in dollars, would be affected, and could further disrupt the fiscal regime.

“We are (also) aware of suggestions and proposal to sell crude in Naira, this is inconsistent with the law and will further put a materially significant strain on the efforts of the Government to manage the Naira as it will reduce Nigeria’s FX receipts from its highest FX revenue earner – the oil and gas industry, which is a significant source of the Nigerian Government’s royalty and income taxes earnings (PPT, CIT and HT) that are denominated in US Dollars,’’ Isa said.

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Isa also expressed concerns over recent industry developments, including NUPRC’s domestic crude oil refining requirements and production forecast for 2024, and the request for monthly quotations for local refineries.

“However, it is important to highlight certain contractual, legal, financial and factual incongruencies that exist in the increasing push and demands on petroleum producers and particularly on members of the IPPG,” he said.

“We are indeed constrained to say that the current position on this matter may inevitably lead to economic damage and self-sabotage of the Nigerian economy. This is simply an inescapable fact.’’

The IPPG chairman, citing a potential economic emergency, said he is aware that the group’s members are mandated to allocate crude volumes to the domestic market for the second half of 2024, in line with the NUPRC’s domestic crude oil supply obligations (DCSO) guideline.

Isa said under Nigerian law, “any supply of crude oil to a refinery even under a DCSO umbrella is required to be on a willing buyer and willing seller basis”.

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“This is the position of the principal law that cannot be derogated by regulation or guideline,” he said.

“Additionally, all producers (including NNPC Limited) are currently beholden to either fixed supply contracts or forward sale contracts to international traders who have stepped in to fill the financing gap to fund upstream investments since international finance institutions have reduced their funding positions to fossil fuels due mainly to ESG requirements.

“These contractual arrangements have become the necessary collateral obligations for producers (including NNPC Limited) and thus they currently have contractual rights to producers’ barrels of crude oil.

“In addition, crude cargoes are normally sold at least three (3) months in advance and therefore your recent letters to some of our members received in August mandating DCSO volumes from July to December 2024 are not achievable, particularly as most, if not all, of the cargoes from July to October will already have been sold.’’

‘NIGERIA’S OIL PRODUCTION LEVEL WILL BE AFFECTED’

The IPPG chairman reaffirmed that any action that jeopardises the aforementioned funding mechanism would thereby jeopardise a substantial portion of Nigeria’s crude oil production.

He also said that any unilateral directive to IPPG members to supply domestic refineries in violation of the primary legislation would have certain repercussions, such as producers’ failure to fulfil their offtake obligations to buyers of crude oil who have already entered into contracts.

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Isa said it would also impact the ability to raise the current production levels from 1.3 million barrels of oil per day to the federal government’s projected 2-2.5 million barrels of oil per day.

The oil producer said it could also put the country in an adversarial position with the international traders, who finance a significant portion of upstream activity, alongside their respective institutional investors.

He said it could cause cross defaults across IPPG members and this would dry up a critical source of foreign exchange (FX) for the country.

“This FX shortage would be acutely felt given that NNPC Limited has engaged in (and is currently marketing) a series of Forward Sale Agreements which mean future revenues are being secured against upfront funding,” he said.

If IPPG members cannot augment this gap with their FX inflows, he said it creates a spiral of liquidity funding that would further impair the economy on a macro level.

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Troops kill ISWAP commanders, two Arab fighters in Borno

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The gallant troops of the Nigerian Army have killed Abu Hajara, a high-profile member of the Islamic State West Africa Province (ISWAP) Shura Council, and Abul Walid, a prominent commander and close associate of Ba Shuwa, the group’s overall Wali (leader).

In astatement issued on Sunday, the acting media information officer of Operation Hadin Kai, Mohammed Goni, said that two other high-ranking Arab fighters were also killed during the engagement in Kukawa LGA of Borno state on October 31.

Goni said the attack came three days after troops killed 55 terrorists, including three key commanders.

“Combined troops of Joint Task Force deployed in Kukawa defeated massive ISWAP terrorists attack on their locations and troops utilised both ground and air assets from the air component,” the statement reads.

“Following the engagement, troops recovered scores of arms, ammunition and communication devices.

“The successful engagement further demonstrates the combat readiness, vigilance and superior firepower of Operation HADIN KAI troops in sustaining pressure on terrorist elements across the theatre.

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“The attack on troops location at Kukawa comes barely 3 days after Buni Yadi attack where as at date 55 terrorists were neutralised including key commanders such as Ali Mandara Abba Gajiri (Munzir), Habu Ikkima Nakif Yana Faruk and Commander Gogore.”

Goni described the killing of the ISWAP fighters as a “significant blow to the leadership and operational capability” of the group.

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Jailed Osun monarch drags Adeleke to court over plan to replace him

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Dethroned Oba Joseph Oloyede, Apetumodu of Ipetumodu in Osun State, who is presently serving jail time in the United States of America for offences bordering on fraud, has dragged the Osun State Governor, Ademola Adeleke, before the court, asking it to stop him from filling the stool.

Oloyede, who is the second claimant in suit no. HIF/50/2026, in his motion on notice filed before an Osun State High Court sitting in Ile-Ife, alleged that Adeleke did not formally inform him of any infraction he committed before embarking on the process to replace him.

He is seeking an order of the court stopping the governor or any of his officials from filling the stool of Apetumodu until the substantive suit was determined.

Other claimants in the matter include Prince Oyewusi Adewusi, Prince Isaac Adewuni, and Prince Abiodun Oyetoro, for themselves and on behalf of other members of the Latimogun Royal Family of the Aribile Ruling House of Ipetumodu.

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Aside from Adeleke, other defendants in the matter are the Osun State Attorney-General and Commissioner for Justice, the Commissioner for Local Government and Chieftaincy Affairs, Chief Afolabi Adedeji, the Asalu of Ipetumodu and the head of the kingmakers, Chief Adesoye Babalola, the Malefon of Ipetumodu, and the Ife North Local Government.

The motion on notice filed by Oloyede, dated September 16, 2026, partly read, “An order of interlocutory injunction restraining the defendants/respondents either by themselves or through their servants, agents or privies from taking any step to fill the stool of the Apetu (Apetumodu) of Ipetumodu or appoint any person in place of the 2nd claimant who is the occupant of the Apetu’s stool, pending the hearing and final determination of this suit.

“That in The Guardian Newspaper of May 11, 2026 (online edition), it was alleged that the 2nd claimant/applicant has, by order/instrument purportedly signed by the 1st defendant on May 7, 2026, been deposed from office as the Apetumodu of Ipetumodu without any lawful basis.

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“That there was no time the 2nd claimant/applicant was informed by the 1st-3rd defendants of any wrongdoing before the issuance of the publication contained in the said Guardian Newspaper and the purported instrument or order of deposition.”

The hearing in the matter was, however, stalled on Monday, following non-service of hearing notices on the parties in the case.

During the day’s proceedings, only the claimants’ counsel, O. Ogbewe, and counsel for the 5th defendant, Soji Oyetayo, entered appearances.

Addressing the court, Ogbewe said he had served the defendants with the processes regarding the case.

But Oyetayo, counsel for the 5th respondent, Adesoye Babalola, said hearing notice had not been served on him by the claimants.

Oyetayo subsequently urged the court to adjourn the matter for the claimants to serve all the defendants’ hearing notices.

In his ruling, Justice Dapo Adeniji adjourned the case to January 21, 2027, and ordered that fresh hearing notices be issued and served on the defendants.

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It would be recalled that Adeleke approved the deposition of Oba Oloyede as the Apetumodu of Ipetumodu, following his conviction in the US on tax fraud and money laundering charges.

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Two Oyo commissioner, special adviser resign

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Two senior officials in the Oyo State Ministry of Budget and Economic Planning have resigned their appointments from Governor Seyi Makinde’s administration.

The officials are Ayobami Ojo, the Commissioner for Budget and Economic Planning, and Simeon Oyeleke, the ministry’s Special Adviser on Budget and Economic Planning.

In separate letters dated November 2, and addressed to Mr Makinde, both officials said their resignations would take effect immediately, while thanking the governor for the opportunity to serve but did not give specific reasons for their decisions.

In his letter, Ojo referred to his appointment letter dated 22 June 2026 and formally announced his resignation as commissioner.

“With reference to your letter dated 22nd June, 2026 (SP.S.662/2/VOL.IV/192), I respectfully write to formally resign my appointment as Honourable Commissioner for Budget and Economic Planning, with effect from today, 2nd November, 2026,” he wrote.

He described his time in government as an honour and said he appreciated the opportunity to serve the state.

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Oyeleke also tendered his resignation with effect from 2 November.

In his letter, he thanked Mr Makinde for the confidence reposed in him and the opportunity to contribute to the administration’s policies and development programmes.

He also expressed appreciation for the governor’s leadership, support and encouragement during his time in office.

“I remain grateful for the opportunity to have been part of this administration and to have contributed to its laudable achievements. I also remain committed to the peace, progress and development of Oyo State,” he wrote.

The latest resignations come amid a series of exits of political appointees and other officials from the Makinde administration in recent months.

It would be recalled that Segun Ogunwuyi resigned as the governor’s chief of staff on 12 October, a position he had held since July 2021. His resignation took immediate effect, although he did not state a reason for his departure.

A few hours after Ogunwuyi’s departure, Makinde appointed Bashorun Akinwole, popularly known as Wolekanle, as his replacement.

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On the same day, Tara Adefope, the Director-General of the Oyo State Due Process Office, also resigned from her position, while in late October, Kabiru Salami, the governor’s Executive Assistant on Security Coordination, also tendered his resignation.

Other officials who have left the administration include Funmi Arulogun, a Senior Special Assistant on Diaspora Matters, who resigned in August, citing personal and political considerations.

Babatunde Oduyoye, a member of the Oyo State Advisory Council, also resigned in July, while Fatai Owoseni, a former Commissioner of Police who served as the governor’s Special Adviser on Security resigned in May.

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