FG Debunks Reports of Collapse of Forward Crude Oil Sales

Ndubuisi Francis in Abuja

The Federal Government has debunked recent media reports concerning the collapse of forward sale of crude oil involving the Nigerian National Petroleum Company Limited (NNPC Ltd).

Debunking the reports Wednesday, the Federal Ministry of Finance in a statement issued by its Director, Information and Public Relations, Mohammed Manga, said while market speculation is not uncommon in the context of ongoing economic reforms and transactions, no final decision has been announced by the government.

According to the statement, any commentary suggesting the collapse of any such initiative is unfounded.

It added that the government remains focused on deploying a range of innovative, transparent and fiscally responsible financing strategies to optimise Nigeria’s oil assets, improve external liquidity and strengthen macroeconomic stability.

The full statement read: “The Federal Government of Nigeria is aware of recent media reports concerning a potential forward sale of crude oil involving the Nigerian National Petroleum Company Limited (NNPC Ltd).

“While market speculation is not uncommon in the context of ongoing economic reforms and transactions, no final decision has been announced by the government, and commentary suggesting the collapse of any such initiative is unfounded.

“The government remains focused on deploying a range of innovative, transparent, and fiscally responsible financing strategies to optimise Nigeria’s oil assets, improve external liquidity, and strengthen macroeconomic stability.”

Since 2019, the state-owned oil company, NNPC Limited, had entered into 11 deals, and executed forward oil sale agreements totalling $21.565 billion, a development that severely constrained its ability to meet Domestic Crude Supply Obligations (DCSO) to local refiners.