The Nigerian National Petroleum Company (NNPC) Limited has signed a new crude deal with the Dangote Petroleum Refinery that will extend supplies for two years.
Under terms of the deal negotiated last month, the NNPCL will provide five cargoes each in September and October, spokesman Andy Odeh said in a response to questions sent by text message to Bloomberg.
He didn’t provide further details on how many cargoes will be provided to the refinery after October.
This brings the supply of crude to the 650,000-barrel-per-day refinery owned by Africa’s richest person, Aliko Dangote, to 82 million barrels since October 2024, with 60% being naira-denominated loads, the NNPC said.
Nigeria last year agreed to sell 445,000 barrels a day of crude to the Dangote refinery in naira to alleviate pressure on the currency and stabilize domestic pump prices. The agreement is a pilot project that may be extended to other domestic refiners, according to the government.
What you should know
Dangote Refinery, on Saturday, resumed the sale of Premium Motor Spirit (PMS) in Naira nationwide, following the intervention of the Naira for Crude Technical Committee chairman.
Nairametrics confirmed the development from a message the refinery sent to its customers on Saturday.
In the message, Dangote Refinery stated: “Following the intervention of the Naira for Crude Technical Committee chairman, we are pleased to inform you of the resumption of PMS Sales in Naira commencing immediately.”
In October 2024, the Federal Government announced a Naira-to-Crude initiative, under which local refineries, including the world’s largest single-train Dangote Refinery, would receive crude oil supplies in the local currency.
In May, the Dangote Refinery had said that it does not compete with Nigerian National Petroleum Company Limited (NNPC Ltd), as the two companies play complementary roles in Nigeria’s energy and refining environment.
This was stated during a courtesy visit by the President/Chief Executive Officer of Dangote Group, Mr. Aliko Dangote, to the Group Chief Executive Officer (GCEO) of NNPC Ltd., Mr. Bashir Bayo Ojulari, at the NNPC Towers in Abuja.
Speaking during the meeting, the CEO of Dangote Group, Alhaji Aliko Dangote, emphasized the importance of collaboration between the two organizations, noting that they are not competitors but partners in driving Nigeria’s energy transformation agenda.
“There is no competition between us. We are not here to compete with NNPC Ltd. NNPC is part and parcel of our business, and we are also part of NNPC. This is an era of cooperation between the two organizations,” Dangote added.
