The Dangote Petroleum Refinery began receiving crude oil deliveries from the Nigerian National Petroleum Company under the government's new naira, which is a local currency, for oil sales policy, a local media outlet, The Punch, reported.
"The naira-for-crude deal has started. The Dangote refinery has received four cargoes so far, and we are still expecting more. The four cargoes have been delivered to the refinery within the past three weeks. We are still expecting more cargo in the coming week," a senior official of the refinery told the media.
The official said she could not tell the cost of the crude oil per barrel.
The first phase of the naira-for-crude program will last for six months, with the possibility of renewal, according to the source.
"Don’t forget that this first phase of the naira-crude sale is just for six months. The government may decide to renew it at the end of the first six months, and they may decide not to. So, we don’t know what will happen yet after the first six months," she pointed out.
The program addresses concerns raised by the Dangote Group about international oil companies' reluctance to supply crude directly to the refinery, alleging price gouging and favoring Asian buyers, The Punch added.
While the Nigerian Upstream Petroleum Regulatory Commission has intervened, the Dangote Group reportedly maintains that international oil companies are still hindering access to locally produced crude.