The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Corporation Limited (NNPCL) have reached an agreement to sell crude oil to the Dangote Refinery in naira. This development marks a significant step as the Dangote Refinery begins supplying petrol to the Nigerian market.
Starting in September 2024, the refinery will supply 25 million litres of petrol daily, with plans to increase this to 30 million litres per day by October 2024. This move follows the Federal Executive Council’s (FEC) recent endorsement of transactions involving the sale of crude oil to the Dangote Refinery and the purchase of petrol products in naira.
Aliko Dangote, CEO of Dangote Refinery, expressed his gratitude to President Bola Tinubu for initiating the naira-based crude oil sales, which is expected to reduce pressure on Nigeria’s foreign exchange market by at least 40%. He emphasized that this initiative will contribute to greater stability for the naira while highlighting the successful commencement of gasoline production at the refinery.
Dangote acknowledged the skepticism surrounding the refinery’s ability to deliver but confirmed that the project has now reached a significant milestone in Nigeria’s energy sector.
