In a major development, the Federal Government and Dangote Refinery have agreed to pay for crude oil supplied to the facility in local currency.
This agreement will allow the refinery, which has a capacity of 650,000 barrels per day, to receive a significant 24 million barrels of oil throughout October and November.
According to a Credible source on Monday, the Dangote Refinery, situated just outside Lagos, is expected to process up to 400,000 barrels of crude daily over the next two months.
This represents a transformative moment for Africa’s largest oil plant in the region’s import and export markets.
Last month, the Presidential Committee on the Sale of Crude Oil and Refined Products announced that NNPC Limited would begin supplying approximately 385,000 barrels of crude oil to the Dangote Refinery starting October 1, 2024.
The Federal Government confirmed: “From October 1, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery, to be paid for in Naira.
“In return, the Dangote Refinery will supply PMS (premium motor spirit) and diesel of equivalent value to the domestic market, also payable in Naira.”
Additionally, the government stated that diesel would be available for sale in Naira to any interested off-taker, while PMS would be sold exclusively to NNPC, which will then distribute it to various marketers. All associated regulatory costs will also be settled in Naira.
