The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Corporation Limited (NNPCL) have finally agreed to sell crude oil to the Dangote refinery in naira.

NMDPRA announced that the Dangote refinery will provide 25 million litres of fuel each day starting in September 2024.

Naija News reports that this announcement follows the initiation of petrol production at the Dangote refinery.

This initiative aligns with the recent endorsement by the Federal Executive Council (FEC) to conduct transactions involving crude oil sales to the Dangote refinery in naira and purchase petrol products from the refinery in the local currency.

“At the NMDPRA headquarters in Abuja, NNPCL reached an agreement to commence crude oil sale and supply to Dangote Refinery in local currency.

“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September. And will subsequently increase this amount to 30 million litres daily from October 2024,” NMDPRA said.

Earlier today, the CEO of Dangote Refinery, Aliko Dangote, stated that the agreement to sell crude oil to his refinery in naira, initiated by President Bola Tinubu, is expected to alleviate pressure on foreign exchange by a minimum of 40%.

He thanked President Bola Tinubu and his administration for implementing this strategic initiative.

“I want to personally also thank Mr. President for creating this idea of Naira for Crude and also Naira for the product. This will give a lot of stability for the Naira because you remove 40% of the demand of the dollars in the market. That’s not only it.

“Today’s discussion is only to thank God almighty for bringing us into this period of now producing gasoline. I know that a lot of people think we won’t be able to deliver. But we’ve been able to deliver,” Dangote said.