There are growing concerns over the possible disruption of petrol supply in Nigeria, as the naira-for-crude oil deal between the Nigerian National Petroleum Company (NNPC) Limited and Dangote Refinery faces challenges.
The agreement, which aimed to allow domestic refiners, including Dangote, to purchase crude oil in naira rather than US dollars, is reportedly stalling, raising fears of potential supply shortages.
The naira-for-crude deal, initiated by the federal government, was intended to ensure that domestic refineries, including Dangote’s, receive a consistent supply of crude oil.
Under the arrangement, the NNPCL was expected to supply crude oil to Dangote Refinery in exchange for refined products, which would then be distributed across the country to stabilise the fuel market.
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According to reports, Dangote, with a refining capacity of 650,000 barrels per day, has been unable to access crude oil from local producers.
This is largely due to the failure of the NNPC to fulfil its part of the crude oil swap agreement, which was designed to provide the refinery with a steady supply of crude oil in exchange for refined petroleum products.
The failure of this agreement is now raising concerns that Dangote may stop supplying petrol to the Nigerian market.
If this happens, it could exacerbate Nigeria’s already fragile fuel supply chain. The country has long relied on imported petroleum products to meet its energy needs, despite being Africa’s largest oil producer.
