By: Trendstter tribune

The Nigerian government has confirmed that, starting in October 2024, the Nigerian National Petroleum Company Limited (NNPCL) will begin supplying crude oil in Naira to the Dangote Refinery. This move is aimed at lowering the cost of Premium Motor Spirit (PMS), commonly known as petrol.

This announcement was made by Dare Adekanmbi, spokesperson for Zacch Adedeji, Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency. Adekanmbi confirmed that the government is working tirelessly to ensure the agreement is successfully implemented for the benefit of Nigerians.

The plan follows a September 2024 decision by the Federal Executive Council, led by President Bola Tinubu, which approved the sale of crude oil to local refineries in Naira. This system will allow both crude supply and the sale of refined products, such as petrol and diesel, to be conducted in the local currency.

From October 1, 2024, NNPCL will supply 385,000 barrels of crude oil daily to the Dangote Refinery, totaling about 11.5 million barrels per month. In return, the refinery will release refined petrol and diesel into the domestic market, also priced in Naira.

There have been calls for the Naira-for-crude deal to be extended to other modular refineries in Nigeria. The Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, Eche Idoko, expressed concerns that only Dangote Refinery is being considered in the current agreement.

Petroleum marketers have supported this new system, predicting that it could lead to a reduction in fuel prices. As of now, fuel prices across Nigeria range between N950 and N1,100 per liter.