Just In: NNPCL, Dangote Refinery Agree to Naira-Denominated Crude Oil Deal

In a significant boost to Nigeria’s domestic fuel production, the Nigerian National Petroleum Company Limited (NNPCL) has entered into a strategic agreement with Dangote Petroleum Refinery to supply crude oil in Naira.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the deal on Tuesday, highlighting its potential impact on the country’s fuel security.

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According to the NMDPRA, the agreement will see the NNPCL commence the sale and supply of crude oil to Dangote Refinery in local currency, a move that is expected to reduce Nigeria’s reliance on foreign exchange for fuel imports.

Dangote Refinery has also committed to supplying an initial 25 million liters of Premium Motor Spirit (PMS) to the domestic market in September 2024. This volume is set to increase to 30 million liters per day in October.

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The NMDPRA expressed optimism about the refinery’s ability to meet these targets, stating that it is well-positioned to contribute significantly to the nation’s fuel needs.