The Nigerian National Petroleum Company Limited (NNPCL) has reached a landmark agreement with Dangote Petroleum Refinery to sell crude oil in Naira, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced on Tuesday.
According to the NMDPRA, the agreement marks a significant milestone in the country’s efforts to promote the use of local currency in the oil and gas sector. The NNPCL will commence crude oil sale and supply to Dangote Refinery in Naira, paving the way for a more stable and predictable oil market.
The Dangote Refinery is poised to make a significant impact on the domestic fuel market, with plans to supply an initial 25 million litres of Premium Motor Spirit (PMS) per day in September 2024. This volume is expected to increase to 30 million litres per day from October 2024, providing a much-needed boost to the country’s fuel supply.
The NMDPRA confirmed the development on its official social media handle, @NMDPRA_Official, stating that the refinery is now ready to supply fuel into the domestic market. This move is expected to have a positive impact on the country’s economy and reduce its reliance on foreign exchange.
