By Karen James
The Nigerian Federal Government is set to deliver up to 400,000 barrels of crude oil daily to the Dangote Refinery, marking a significant development in the country’s energy sector. This deal, part of the naira-for-crude agreement, will see 24 million barrels of Nigerian crude supplied between October and November 2024. The increase in local processing capacity is expected to impact both regional oil exports and imports, reshaping Nigeria’s oil market.
According to Pechilly Investigative Reporter, the Nigerian National Petroleum Company Limited (NNPCL) will begin supplying the refinery this week, with plans to supply three additional refineries for Premium Motor Spirit production. The 650,000-barrel-per-day Dangote plant is set to significantly reduce Nigeria’s crude exports by using local feedstock, tightening the West African crude market in the fourth quarter. Analysts warn that the country’s crude exports may fall below 1 million barrels per day due to this shift in supply.
The ramp-up in Dangote’s operations could help Nigeria reduce its dependency on oil product imports, a longstanding goal for the nation. As the refinery moves toward full capacity, the West African market for gasoline and diesel imports is likely to shrink rapidly, experts say. This development signals a potential turning point for Nigeria’s energy self-sufficiency and export potential.
