Nigeria’s Dangote Refinery to Purchase Crude Oil in Local Currency, Aiming to Address Fuel Import Dependency

Nigeria’s Dangote Refinery, one of Africa’s largest, is set to purchase crude oil in Nigerian naira from October 1st, as announced by the country’s finance ministry. This move aims to ease operations for the refinery, which has struggled to secure sufficient crude oil to reach its 650,000 barrel per day capacity despite Nigeria being the continent’s top oil producer. The refinery’s success could significantly impact Nigeria’s paradoxical reliance on imported petrol, provided it achieves its production potential.

• Nigeria’s huge Dangote Refinery to start buying crude oil in naira from October 1st.
• The refinery has struggled to secure enough crude for its 650,000 barrel per day capacity.
• This move could help reduce Nigeria’s reliance on imported petrol.
• Local currency transactions are favored by the refinery but resisted by local producers due to the naira’s instability.
• Nigeria, despite being the continent’s top oil producer, heavily relies on imported petrol.
• The country faces petrol scarcity even with the refinery’s operation.
• Disagreements on the currency of trade have hindered the refinery’s potential impact.
• Nigeria has four refineries, yet still faces significant petrol importation and scarcity issues.

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