… prepares additional 11.71 million barrels, shifts to Naira-based transactions
Oredola Adeola
The Nigerian National Petroleum Company Limited (NNPCL) has delivered approximately 36.9 million barrels of crude oil to the Dangote Refinery since December 2023, with an additional 11.71 million barrels expected in October 2024.
This will therefore bring the total crude supply to 48.6 million barrels by the end of October.
Olufemi Soneye, Chief Corporate Communications Officer at NNPC Ltd., confirmed this to Advisors Reports on Tuesday.
Crude oil deliveries to the Dangote Refinery have steadily increased over the months, with notable supplies including:
- December 2023: 3.42 million barrels
- February 2024: 3.47 million barrels
- March 2024: 3.29 million barrels
- April 2024: 3.33 million barrels
- May 2024: 3.02 million barrels
- June 2024: 5.11 million barrels
- July 2024: 5.11 million barrels
- August 2024: 4.80 million barrels
- September 2024: 5.35 million barrels (projected)
- October 2024: 11,715,000 barrels (projected)
Advisors Reports indicate that the ongoing supply of crude oil to the Dangote Refinery represents a significant shift from the traditional dollar-based transactions to a Naira-denominated model.
This adjustment is part of the Nigerian National Petroleum Company Limited’s (NNPCL) broader strategy to ensure a consistent fuel supply in the local market, with an aim to ramp up crude deliveries to 385,000 barrels per day in the near future.
In line with this development, the Presidential Technical Sub-Committee, co-chaired by the Minister of Finance, Mr. Wale Edun, and the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, announced an agreement to sell crude oil to local refineries in Naira.
This initiative is designed to promote economic stability and enhance domestic refining capabilities.
The committee mandated that, from September and October 2024, all crude oil transactions between NNPCL and local refineries will be settled in Naira.
As part of this agreement, the Dangote Refinery will supply Premium Motor Spirit (PMS) and diesel to the domestic market in exchange for crude oil, ensuring that diesel will also be sold to buyers in Naira.
In addition, NNPC has positioned a permanent team at the Dangote Refinery to oversee production processes and ensure efficient management of crude supplies.
This hands-on approach aims to support the refinery’s operations and ensure the effective implementation of the new payment model.
