By: Alimi Waliyat Opeyemi, SIWES Student (Adeseun Ogundoyin Polytechnic)
The Nigerian National Petroleum Company Limited (NNPC) is set to begin supplying crude oil in naira to the Dangote Petroleum Refinery this week, following the Federal Government’s announcement that the naira-for-crude initiative has officially commenced.
In addition, three other refineries are gearing up to produce Premium Motor Spirit (PMS), commonly known as petrol. These refineries include Aradel in Rivers State (11,000 barrels per day), Clairgold in Delta State (20,000 barrels per day), and Azikel in Bayelsa (12,000 barrels per day).
Officials from these domestic refineries confirmed on Sunday that the naira-for-crude agreement is now operational, with crude expected to reach Africa’s largest refinery, the Dangote Refinery, soon.
The Federal Government officially announced the start of crude oil and refined product sales in naira on Saturday. The Ministry of Finance, following a Federal Executive Council directive, confirmed that the initiative became effective on October 1, 2024, after consultations with key stakeholders.
Officials from the Dangote Refinery expressed optimism about the deal, indicating that the first crude deliveries are expected this week. The arrangement is projected to last for six months, with the goal of alleviating pressure on the naira and reducing transaction costs.
Meanwhile, the Crude Oil Refinery Owners Association of Nigeria and the Petroleum Retail Outlet Owners Association of Nigeria have voiced support for the initiative but have called for further clarity on the implementation, particularly regarding crude pricing and its broader economic impact.
