A high-ranking official from Dangote Refinery, along with representatives from the federal government, has confirmed the arrival of the first shipments of crude oil from the Nigerian National Petroleum Company Limited (NNPCL) under the pioneering naira-for-crude sale initiative, as reported by PUNCH.
This milestone marks the beginning of a groundbreaking transaction, where Dangote Refinery in Lagos State receives crude oil supplies in exchange for naira payments.
According to insiders, four shipments of crude oil have been delivered to the refinery within the past three weeks, since the government launched the program to supply local refineries with crude oil in the local currency.
The refinery anticipates additional shipments in the coming weeks, further bolstering domestic petroleum production.
Sources revealed that Dangote Refinery is poised to directly supply refined petroleum products to local marketers, a significant step towards enhancing energy self-sufficiency.
As the sole petroleum-producing facility in Nigeria currently, Dangote Refinery has been selected to pioneer this innovative program.
The naira-for-crude arrangement is initially slated to last six months, although the exact cost per barrel of crude oil remains undisclosed.
An official stated, “The naira-for-crude initiative has taken off, with Dangote Refinery receiving four shipments so far. We expect more deliveries in the upcoming weeks.”
Notably, the six-month pilot phase may be extended or discontinued, pending government review.
Previously, Alhaji Aliko Dangote, President of the Dangote Group, had expressed concerns that international oil companies planned to undermine the investment by withholding crude oil supplies.
The Dangote Group alleged that these companies insisted on selling crude oil through foreign intermediaries, thereby inflating local crude prices by $2 to $4 per barrel above the official rate.
The implications of this arrangement on petrol prices, currently hovering around N1030 per liter at NNPCL fueling stations, remain uncertain.
This development holds significant promise for Nigeria’s energy sector, and stakeholders eagerly await the outcomes of this pioneering initiative.
