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Dangote Refinery Gets First Batch Of Crude From NNPCL In Naira-for-Crude Agreement
The Dangote Petroleum Refinery has received four cargoes of crude oil from the Nigerian National Petroleum Company Limited (NNPCL) under a naira-for-crude agreement, according to both refinery officials and the Federal Government.
These deliveries, made over the past three weeks, are part of a larger initiative where NNPCL supplies crude to local refineries in exchange for payment in naira, kick-starting the government’s local crude sale plan.
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EKO HOT BLOG reports that a senior refinery official confirmed that the naira-for-crude agreement would run for six months, with more cargoes expected in the coming weeks. The $20bn Lekki-based refinery is now prepared to sell refined products, such as Premium Motor Spirit (PMS), diesel, and aviation fuel, to domestic dealers.
The initiative aims to stabilize fuel prices and ensure a steady supply of petroleum products in Nigeria. The refinery, the only petrol-producing facility currently operational in Nigeria, is expected to receive approximately 385,000 barrels of crude per day under this agreement.
Despite these positive developments, the Dangote Group previously raised concerns over difficulties in securing crude oil from international oil companies (IOCs). It alleged that the IOCs had frustrated the refinery by offering crude oil at prices higher than the official market rates and prioritizing foreign buyers, particularly in Asia.
In response to these challenges, the Nigerian Upstream Petroleum Regulatory Commission intervened, ensuring better access to locally-produced crude for the refinery.
Dangote NNPCL Naira-for-Crude
The Federal Executive Council, led by President Bola Tinubu, approved the sale of crude to Nigerian refineries in naira to alleviate these issues and stabilize the country’s fuel supply.
The Dangote refinery is serving as the pilot for this program, with further supplies and adjustments to the agreement expected in the future.
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