
The Nigerian National Petroleum Company Limited (NNPCL) has reached an agreement to sell crude oil to Dangote Petroleum Refinery in Naira.


This historic deal, confirmed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on September 3, 2024, marks the beginning of local currency transactions for crude oil sales.

The NMDPRA announced via its official X handle, @NMDPRA_Official, that the refinery is poised to supply an initial 25 million litres per day of Premium Motor Spirit (PMS) into the domestic market starting this month.
The volume is expected to increase to 30 million litres daily by October 2024. "This initiative aims to decrease foreign exchange demand and stabilize the Naira," stated the NMDPRA.

The move is anticipated to significantly impact Nigeria's economy by reducing reliance on foreign currency and enhancing the availability of locally produced petroleum products.
Aliko Dangote, the owner of Dangote Refinery, emphasized the broader implications of this agreement. "Our fuel will eliminate queues, stabilize the Naira, and improve health," he said, highlighting the multifaceted benefits of the deal.
The agreement also aligns with President Tinubu's long-term vision for Nigeria's energy independence. "My refinery was Tinubu’s dream 18 years ago," noted Dangote, underscoring the strategic importance of this development.
Comments