Nigeria Authorizes Direct Petrol Purchase from Dangote

The Federal Government of Nigeria has authorized petroleum marketers to purchase petrol directly from the Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC) as the sole off-taker, in a move to facilitate a fully deregulated petroleum market. This transition is part of the naira-for-crude initiative, which allows for a six-month supply of crude oil in naira to the refinery, with a review pending after this period. The Dangote Refinery is poised to significantly impact Nigeria's economy by increasing GDP and reducing reliance on imported petroleum products, with projections showing GDP growth reaching 6.21% by 2030. The refinery, which has begun initial production, is expected to process 650,000 barrels per day by early 2025, thereby reshaping Africa's economic landscape through job creation and regional growth. Furthermore, the refinery is set to receive 400,000 barrels of Nigerian crude daily over two months, which is anticipated to shift the region's import and export markets. This development underscores the refinery's potential as a transformative force in Africa, with commendations from African Union representatives for its role in driving economic growth and opportunities for youth.