The Nigerian National Petroleum Company Limited (NNPC) is set to begin supplying crude oil in naira to the Dangote Petroleum Refinery starting on October 1, 2024. This follows the Federal Executive Council’s approval of the sale of crude to local refineries in naira and the corresponding purchase of petroleum products in local currency.
The Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency, chaired by Zacch Adedeji, confirmed that NNPC would supply around 385,000 barrels per day (bpd) to the Dangote Refinery. In return, the refinery will release refined petrol and diesel to the Nigerian market, all in naira, reducing pressure on foreign exchange and boosting domestic petroleum product availability.
Despite this initiative, modular refineries have expressed concerns about being excluded from the arrangement. They are urging the government to extend the supply of crude to their operations, as many are facing crude shortages that have limited their production capacity.
The deal has raised hopes that the naira-for-crude sale will help stabilize fuel prices in Nigeria. However, the Dangote refinery has denied reports of selling petroleum products at inflated prices and asked Nigerians to await official announcements from the committee overseeing the implementation of the initiative.