New NNPC Deal as Dangote Refinery Faces Challenges

The Lagos State Government has implemented a comprehensive traffic management strategy to ensure smooth traffic flow in the Lekki-Ajah corridor as the Dangote Refinery begins operations. Nigerian petroleum marketers have lifted significant quantities of diesel and Jet A1 from the refinery, contradicting earlier claims of a boycott. Additionally, the Nigerian National Petroleum Company (NNPC) has struck a deal to be the sole distributor of gasoline from the Dangote Refinery, with transactions in local currency. Talks are ongoing for NNPC to sell crude to the refinery and buy back refined products in naira, aiming to start by October 1, 2024. Despite significant production capacity, local marketers are reportedly purchasing only a small fraction of Dangote Refinery's output, forcing the refinery to export the majority of its products.