Dangote Refinery Receives First Supplies Of Crude Oil In Naira Sale From NNPCL
The long-awaited sale of crude oil to the Dangote Refinery in Lagos State, paid for in Naira, has officially begun. According to PUNCH, a senior official from Dangote Refinery, along with federal government representatives, confirmed the delivery of four cargoes of crude oil from the Nigerian National Petroleum Company Limited (NNPCL) under this naira-for-crude agreement.
The refinery is expected to receive more shipments in the coming weeks as part of the ongoing deal. It was reported that these initial deliveries took place over the past three weeks as the government initiated the sale of crude to local refineries in exchange for local currency. Additionally, the Dangote Refinery is preparing to sell refined petroleum products directly to domestic dealers.
The refinery is currently the only facility in Nigeria producing petrol under this arrangement. The naira-for-crude deal is set to last for six months, though the exact cost per barrel has not been disclosed.
“The naira-for-crude deal has started. The Dangote Refinery has received four cargoes so far, and we are expecting more. These cargoes were delivered within the past three weeks, and more are expected in the coming weeks,” said an official. The official also noted that the government will decide whether to renew the agreement after the first six months.
With a production capacity of 650,000 barrels per day, the Dangote Refinery has faced considerable challenges. At one point, Alhaji Aliko Dangote, President of the Dangote Group, expressed concerns over sabotage, alleging that some international oil companies (IOCs) were attempting to disrupt the operation by refusing to supply crude directly to the refinery.
The Dangote Group claimed that these IOCs insisted on selling crude through foreign agents, which led to higher local prices. These trading firms reportedly offered cargoes at $2 to $4 per barrel above the official price.
It remains unclear how this arrangement will impact the price of petrol in Nigeria, where it currently sells for over N1,030 per litre at NNPCL fueling stations.
