NNPC to sell crude in naira to Dangote Refinery

Nigeria

LAGOS, July 30, 2024 – Nigeria’s government has approved the sale of crude in naira by state oil company NNPC to local refineries, including the Dangote Refinery, the chairman of the Federal Inland Revenue Service, Zacchaeus Adedeji, revealed on Monday.

The directive includes the sale of 450,000 barrels of crude by NNPC for domestic consumption to Dangote refinery. Afreximbank will facilitate the exchange between NNPC and Dangote.

Chairman Adedeji stated that the reason for the directive is due to the currency shortage the country is facing on account of crude oil imports, which account for 30-40% of the country’s foreign exchange spending . The move should help stabilise the NGN-USD exchange rate and domestic fuel prices.

The deal also addresses the oil supply shortage affecting the Dangote Refinery. The refinery is the largest refinery in Africa, with a capacity of 650,000 bopd, but has yet to reach its full capacity since it commenced operations in January 2024.

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