The Dangote Refinery has recently received additional crude oil shipments from the Nigerian National Petroleum Company Limited (NNPCL).
This development follows a meeting of the Technical Sub-Committee on the Naira-for-Crude Policy in Abuja, where members reviewed progress and addressed emerging issues related to the policy.
The Naira-for-Crude agreement, initiated in October 2024, allows NNPCL to supply crude oil to the Dangote Refinery in exchange for payment in naira.
The initial six-month contract is approaching its end on March 31, 2025, and discussions are underway to extend the agreement. So far, NNPCL has supplied 48 million barrels of oil under the current terms, though the agreed volumes were not fully delivered.
In addition to domestic supplies, the Dangote Refinery is reportedly importing crude oil from international suppliers, including Angola and Algeria, as it ramps up production. This strategy aims to diversify crude sources and ensure a steady supply for refining operations.
The Dangote Refinery, with a capacity of 650,000 barrels per day, is expected to reduce Nigeria’s dependence on imported petroleum products significantly and influence local fuel prices. Its operations have already sparked a price competition in the downstream oil industry, reducing petrol prices in Lagos.
