Naira-for-crude: Dangote refinery to get 400,000 barrels daily, says report

The Federal Government is set to supply the Dangote Refinery with up to 400,000 barrels of crude oil daily over the next two months, as part of a newly implemented naira-for-crude agreement.

Bloomberg on Monday reported that the arrangement was part of a naira-for-crude deal.

The arrangement could lead to the delivery of 24 million barrels of Nigerian crude to the refinery between October and November 2024.

The deal would impact the local oil industry and regional markets, especially as the Dangote Refinery ramps up production.

According to cargo allocations reviewed by Bloomberg News, Dangote’s increasing reliance on local feedstock will disrupt the Atlantic oil market by substantially decreasing Nigeria’s crude exports.

The 650,000-barrel-per-day plant, which is larger than any other in Africa or Europe, will receive 13 to 14 shipments from Nigeria’s typical monthly programme of about 50 cargoes.

According to Ronan Hodgson, a FGE analyst based in London, the West African crude market will be “substantially tighter” in the fourth quarter due to Dangote’s supply.