The Federal Government and Dangote Refinery have agreed to pay for crude oil supplied to the facility in local currency, Cyber Reporters report.
This arrangement will allow the 650,000 barrels per day refinery to receive a hefty 24 million barrels of oil throughout October and November of this year.
According to a Bloomberg report on Monday, the Dangote Refinery, located just outside Lagos, is expected to take in up to 400,000 barrels of crude per day over the next two months.
This represents a watershed 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 stated that NNPC Limited will begin supplying roughly 385,000 barrels of crude oil to the Dangote Refinery on October 1, 2024.
The Federal Government confirmed: “From October 1, NNPC will begin supplying approximately 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.”
Furthermore, the government indicated that diesel will be offered for sale in Naira to any interested off-taker, while PMS will be sold only to NNPC.
