The Nigerian National Petroleum Company Limited (NNPC) has initiated a naira-for-crude deal with the Dangote Petroleum Refinery, set to last for six months in its first phase, pending further review. This arrangement aims to supply about 385,000 barrels of crude oil per day to the refinery, priced in naira at its dollar equivalent. The Federal Government plans to deliver up to 400,000 barrels of Nigerian crude oil daily to the refinery between October and November 2024.
Sources from both the Technical Sub-Committee on Domestic Sales of Crude Oil and the Dangote refinery confirmed that while the arrangement is an important step, the crude oil market operates primarily in dollars, and this deal is a temporary measure to alleviate pressure on the naira. The Federal Government emphasized that this initiative would reduce transaction costs and enhance local petroleum product availability.
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FG to Supply 400,000 Barrels of Crude Daily to Dangote Refinery in Naira-for-Oil Deal
In another development, oil marketers reported they had not received official communication from NNPC or Dangote Refinery regarding the reported end of NNPC’s role as the sole off-taker of petrol from the refinery. Despite earlier suspensions by some depots in anticipation of a price hike, the situation stabilized when neither NNPC nor Dangote confirmed the halt in NNPC’s role.
Additionally, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has gained access to the NNPC’s petrol purchasing portal, which was previously closed. IPMAN members have now started processing product orders and expect to enhance petrol distribution across the country. The price of petrol remains stable for now, with ongoing deliveries from NNPC.
