The Dangote Petroleum Refinery has received its first set of crude oil deliveries from the Nigerian National Petroleum Company Limited (NNPCL) as part of a recently signed naira-for-crude agreement.
This deal allows the NNPC to supply crude oil to the Dangote refinery in exchange for payments made in naira, Nigeria’s local currency, instead of foreign currencies like the U.S. dollar.
Over the past three weeks, the refinery has received four cargoes of crude oil from NNPCL, according to a reliable source within the industry.
A reliable industry source close to the refinery told VANGUARD, “In the past few weeks, the Dangote refinery has received four cargoes of crude oil and more supplies will be delivered in the next few weeks.”
This supply marks the beginning of what is expected to be a continuous flow of crude to the refinery, as more shipments are scheduled in the coming weeks.
The agreement is seen as a key move by the Nigerian government to strengthen its local economy by reducing dependency on foreign exchange for critical transactions. By using naira instead of dollars or other international currencies, this deal is expected to help stabilize Nigeria’s currency and support the country’s economic activities.
The Dangote Petroleum Refinery, the largest single-train refinery in the world, is located in the Lekki Free Zone near Lagos, Nigeria. Once fully operational, it is expected to meet Nigeria’s entire fuel demand and even have surplus for export, reducing the country’s reliance on imported fuel. This will significantly help in saving foreign exchange spent on fuel importation and also create job opportunities.
