The Nigerian National Petroleum Company Limited (NNPC) will begin supplying crude oil to the Dangote Petroleum Refinery in local currency starting October 1, 2024, confirmed the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency.
The Federal Executive Council, led by President Bola Tinubu, approved the sale of crude to local refineries in naira and the corresponding purchase of petroleum products in naira on September 13, 2024.
“From October 1, NNPC will commence the supply of about 385kbpd (385,000 barrels per day) of crude oil to the Dangote refinery to be paid for in naira,” the committee stated.
Special Adviser to the FIRS Chairman, Dare Adekanmbi, confirmed the plan’s implementation, saying, “The Chairman, Sub-Technical Committee, Zacch Adedeji, is working day and night to ensure things go according to plans.”
This initiative aims to reduce pressure on the naira, eliminate unnecessary transaction costs, and improve petroleum product availability.
Adedeji explained, “In return, the Dangote refinery will supply PMS (petrol) and diesel of equivalent value to the domestic market to be paid in naira… Diesel will be sold in naira by the Dangote refinery to any interested off-taker. PMS will only be sold to NNPC.”
However, modular refineries have not been included in the scheme, according to Crude Oil Refinery-owners Association of Nigeria’s Publicity Secretary, Eche Idoko.
“The committee is only discussing with Dangote at the moment,” Idoko said.
The Dangote refinery has refused to announce fuel prices, denying claims of selling at N898 per litre to NNPC.
“We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing… bearing in mind that our current stock of crude was procured in dollars,” the Dangote Group stated.
The Federal Government maintains it won’t interfere in the price controversy between NNPC and Dangote, citing deregulation of the petroleum sector.
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