Naira-for-Oil Deal: FG To Supply 400,000 Barrels Of Crude Daily To Dangote Refinery

While the Naira-for-Oil initiative is ongoing, the Federal Government is reportedly set to deliver up to 400,000 barrels of Nigerian crude oil daily to the Dangote Refinery.

This move, slated to begin between October and November 2024, will see a total of 24 million barrels of Nigerian crude supplied to the refinery, significantly impacting local oil markets. 

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The Dangote Refinery, with a capacity of 650,000 barrels per day, is expected to reduce Nigeria’s crude exports, tightening the West African crude market, and cutting Nigerian exports below 1 million barrels per day. 

The agreement also grants the Nigerian National Petroleum Company Limited exclusive rights to distribute the refinery’s gasoline production. 

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As the refinery ramps up operations, it is anticipated that Nigeria may achieve its goal of reducing costly fuel imports.