In a significant development for Nigeria’s energy sector, Aliko Dangote, President of the Dangote Group, has agreed to sell petrol refined at his 650,000 barrels per day refinery in the local currency, the Naira. This decision comes as part of ongoing negotiations with the Nigerian National Petroleum Company Limited (NNPC), which has also requested the deployment of a permanent monitoring team to the refinery.

The NNPC’s demand for a monitoring team aims to ensure efficient crude supply and processing, as well as a steady flow of Premium Motor Spirit (PMS) for the country. Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, disclosed this during a recent X Space event hosted by Nairametrics.

“NNPC has informed us that they intend to station a team of six to ten people permanently at our refinery. They’ve asked us to provide office space for them since they will be supplying the crude, overseeing the production, and buying back the products in Naira,” Edwin stated. He emphasized that this arrangement aligns with the NNPC’s goal to closely monitor the entire process, ensuring consistent crude supply and efficient processing.

The agreement marks a significant shift in Nigeria’s fuel supply chain, as the refinery will now buy crude from the government in Naira and sell PMS in the same currency, rather than in dollars. This move is expected to stabilize fuel pump prices and the dollar-Naira exchange rate, providing much-needed relief to the Nigerian economy.

The Dangote Refinery, a $20 billion project, is poised to supply an initial 25 million liters of PMS into the domestic market this September, with plans to increase this volume to 30 million liters daily by October. This development is seen as a crucial step towards reducing Nigeria’s dependence on imported fuel and enhancing energy security.

As negotiations continue, critical aspects such as crude pricing and the Naira exchange rate are yet to be finalized. However, the progress made so far signals a promising future for Nigeria’s energy sector, with the potential to transform the country’s fuel supply dynamics and economic stability.