Dangote: Why we're relying on US crude for production | TheCable
According to a statement on Thursday, Dangote spoke when the technical committee of the one-stop shop (OSS) for the naira-for-crude initiative visited the facility.
He emphasised the importance of bold investments in strategic sectors as a cornerstone of industrialisation.
“…due to a shortage of domestic crude oil, the refinery has increasingly relied on imports from the United States to meet its needs in recent months,” Dangote was quoted as saying.
The industrialist said building the refinery required extensive infrastructure development, including a world-class, self-sufficient marine facility capable of accommodating the largest vessels globally.
He assured the delegation of the refinery’s dedication to national development.
Dangote praised the technical committee for supporting the implementation of President Bola Tinubu’s naira-for-crude initiative.
He commended the positive effects of the policy on the Nigerian economy, highlighting its role in reducing petroleum product prices, easing pressure on the dollar, and stabilising the local currency, among other benefits.
Speaking during the visit, Maureen Ogbonna, who led the OSS delegation, described the refinery as a breath of fresh air, impacting virtually every sector of the economy.
Following the visit, stakeholders and regulators met with the steering committee on domestic crude oil and refined products sale in naira of the federal executive council (FEC) to advance energy market reforms.
In a statement on Thursday, Mohammed Manga, the director of information and public relations at the ministry of finance, said the meeting focused on Nigeria’s transition to a self-reliant energy market.
According to the statement, Wale Edun, the minister of finance and coordinating minister of the economy, was present at the meeting.
“The session brought together senior officials from the Federal Inland Revenue Service, NNPC, Dangote and NNPC Refineries, the Central Bank, NMDPRA, NUPRC, and the Nigerian Ports Authority,” Manga said.
“The meeting underscored the importance of ongoing collaboration through the One Stop Shop mechanism, with a focus on accelerating Nigeria’s transition to a self-reliant energy market.”
He said the crude-for-naira framework is essential for stabilising the foreign exchange (FX) market, supporting local industry, and reducing reliance on imports — delivering long-term benefits for both Nigerians and the private sector.
Manga said the steering committee’s review marks a critical milestone in Nigeria’s journey towards energy market reforms, paving the way for greater economic stability and growth.
Nigeria officially commenced the sale of crude oil and refined petroleum products in naira on October 1, 2024, after the FEC by Tinubu directing the NNPC to sell crude oil to Dangote refinery and other refineries in the local currency.
However, in November last year, the refinery said the crude-for-naira initiative , citing supply challenges.
On March 10, TheCable that the NNPC had halted the naira-for-crude deal until 2030, as the government-owned company had forward-sold all its crude oil.
Nine days later, the Dangote refinery said it had the sale of petroleum products in naira.
The refinery said the decision was “necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars”.
But on April 9, the federal government said the naira-for-crude deal would after the end of the first phase, which was March 31.
On May 9, Wale Edun, the minister of finance and coordinating minister of the economy, promised to provide further on the naira-for-crude deal soon.
