In a move that reinforces the Nigerian government’s commitment to the naira-for-crude initiative, the Nigerian National Petroleum Company Limited (NNPCL) has successfully sold 84 million barrels of crude oil to the Dangote Refinery.
This landmark deal, which is valued at over $5 billion, is a significant milestone in the country’s efforts to boost local refining capacity and reduce reliance on imported petroleum products. The naira-for-crude initiative, which was launched last year, aims to encourage local refineries to purchase crude oil from the NNPCL using the Nigerian currency.
According to a statement by the NNPCL, the deal with Dangote Refinery is a testament to the company’s commitment to supporting the growth of the Nigerian oil and gas industry. “This sale is a significant step towards achieving our goal of increasing local refining capacity and reducing our dependence on imported petroleum products,” said the NNPCL’s Managing Director, Mele Kyari.
The Dangote Refinery, which is located in Lagos, is one of the largest refineries in Africa, with a production capacity of 650,000 barrels per day. The refinery is expected to play a critical role in meeting Nigeria’s petroleum needs, reducing the country’s reliance on imported fuel.
Industry experts have hailed the deal as a major breakthrough for the Nigerian oil and gas industry. “This deal is a game-changer for Nigeria’s energy sector,” said Dr. Ibe Kachikwu, a former Minister of State for Petroleum Resources. “It demonstrates the government’s commitment to supporting local refineries and reducing our dependence on imported petroleum products.”
The sale of 84 million barrels of crude oil to Dangote Refinery is expected to have a significant impact on Nigeria’s economy, creating thousands of jobs and generating billions of dollars in revenue. As the country continues to navigate the challenges of the global energy market, deals like this one are crucial to ensuring Nigeria’s energy security and economic prosperity.
