The Nigerian National Petroleum Company Limited (NNPC) is preparing to supply crude oil in naira to the Dangote Petroleum Refinery this week, following the Federal Government's announcement that the naira-for-crude initiative has officially begun. Alongside this, three other domestic refineries—Aradel in Rivers State, Clairgold in Delta State, and Azikel in Bayelsa—are gearing up to commence production of Premium Motor Spirit (PMS), or petrol.
Officials at the Dangote refinery confirmed that the crude supply deal is underway and expressed optimism that the first batch of crude will arrive this week. The Federal Ministry of Finance revealed that the naira-for-crude initiative began on October 1, 2024, as part of efforts to reduce pressure on the naira and improve the availability of petroleum products across the country.
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The naira-for-crude deal will initially last for six months, during which the Dangote refinery will provide petrol and diesel to the domestic market, with NNPC handling distribution. Modular refineries, which have primarily produced diesel in the past, are now investing in equipment upgrades to begin producing petrol, a move expected to help phase out petrol importation in Nigeria.
As the initiative unfolds, industry stakeholders have praised the government's strategy but are calling for greater transparency in the deal’s details. The new system aims to stabilize Nigeria's fuel supply chain and reduce dependence on foreign crude oil traders.
