FG Panel Proposes Six-Month Naira-for-Crude Supply to Dangote Refinery

The Nigerian National Petroleum Company Limited will supply crude oil to the Dangote Petroleum Refinery in exchange for naira for an initial period of six months, subject to review by the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency. Sources from both the committee and the refinery confirmed that the naira-for-crude deal would be temporary due to the international pricing of crude oil in dollars.

It was reported that the Federal Government plans to deliver up to 400,000 barrels of Nigerian crude oil daily to the Dangote refinery over the next two months, amounting to 24 million barrels by November 2024.

Meanwhile, oil marketers stated they had not yet received official communication regarding a halt in NNPC’s role as the sole off-taker of petrol produced by the Lagos-based refinery. Despite circulating rumors, NNPC and Dangote did not confirm any changes, and depots resumed operations after an initial pause amid speculation about a potential price hike for petrol.

Additionally, the Independent Petroleum Marketers Association of Nigeria (IPMAN) revealed that the NNPC portal, previously closed to its members, had been reopened, allowing marketers to apply for petrol purchases. IPMAN stated that it was awaiting confirmation from the Dangote refinery regarding when independent marketers could begin lifting petrol directly from the plant.

The naira-for-crude deal is intended to ease pressure on the naira and streamline costs associated with international crude transactions. However, officials have clarified that this arrangement is temporary, and the deal will undergo review after the initial six-month period.