The Dangote Refinery has begun receiving its first shipments of crude oil from the Nigerian National Petroleum Company Limited (NNPCL) under a new agreement that allows payments in naira. This is part of a broader move by the Nigerian government to reduce reliance on foreign currencies for domestic oil transactions. Starting in October 2024, NNPCL is supplying around 385,000 barrels per day to the refinery, with the total volume expected to reach 24 million barrels between October and November.
In exchange for the crude oil, Dangote Refinery will provide the domestic market with premium motor spirit (PMS) and diesel, both of which will also be paid for in naira. This arrangement marks a significant shift in Nigeria’s oil trade, aimed at stabilizing the local currency and simplifying transactions within the domestic energy market.
