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. 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.
Confirming the development, a senior official of the Refinery hinted that the naira-for-crude agreement would run for six months, with more cargoes expected in the coming weeks. The US$20billion Lekki-based refinery is now prepared to sell refined products, such as Premium Motor Spirit (PMS), diesel, and aviation fuel, to domestic dealers.
TheMediaGood Newspaper can report that the naira-for-crude initiative aims to stabilize fuel prices and ensure a steady supply of petroleum products in Nigeria. The Dangote 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.
It would be recalled that few weeks ago, President Bola Ahmed Tinubu had approved the sale of crude to Nigerian refineries in naira to alleviate the challenges faced by Nigerians and to 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.